According to new data from the Allbritton Journalism Institute, Citizens Property Insurance denied 77% of homeowners’ claims following Hurricane Debby, the first major hurricane to hit Florida in August. The storm caused an estimated $1.4 billion in damages:

• Wind damage: $845 million
• Storm surge: $130 million
• Inland flooding: $440 million

Why Claims Were Denied

Citizens Property Insurance confirmed to News4JAX that the high denial rate was due to claims being flood-related, which the company does not cover. Mark Friedlander, Citizens spokesman, explained: “Debby was largely a flood event for us. Citizens, like most other insurers, doesn’t cover flood. As the state’s insurer of last resort, Citizens covers policies in the most flood-prone areas of the state. A higher denial rate makes sense.”

FEMA Assistance Process

The high denial rate serves a purpose in the disaster recovery process:

• FEMA requires insurance claim denials before offering assistance
• Citizens encouraged policyholders to file claims despite likely denial to expedite FEMA aid
• However, Friedlander cautioned that FEMA grants are not insurance replacements
• Grants may provide emergency funds for temporary living expenses but won’t cover all damage costs

Insurance Coverage Guidelines

Friedlander emphasized that Florida property owners need separate flood coverage:

• Standard property insurance policies explicitly exclude flood damage
• Flood coverage must be obtained through:
  • National Flood Insurance Program
  • Private insurers

Industry-Wide Impact

The impact of Hurricane Debby extended beyond Citizens Insurance. Across all Florida insurers, 51% of residential claims related to the hurricane were closed without payment as of September 27, according to the report. Victims of Hurricanes Helene and Milton may also be denied, particularly homeowners without dedicated flood insurance

(Image credit: City of North Port)