With countless properties destroyed by major hurricanes Helen and Milton in recent weeks, homeowners across the Southeast will be in close contact with insurance agents until their claims are resolved.

Experts say this isn’t the end: Climate change will only intensify the frequency and cost of disasters in the future. And disaster losses along the coast will likely intensify in coming years, in part because of the huge increase in development, said Loretta Worters, a spokeswoman for the Insurance Information Institute.

“Losses from natural disasters have increased tenfold,” Worters said.

Initial estimates put the damage caused by Milton in Florida at more than $50 billion. Helene, which made landfall in Florida before flooding eastern North Carolina, is estimated to have caused at least $11 billion in damage. Just two years ago, Hurricane Ian caused more than $50 billion in losses to South Florida. Compare that to Hurricane Katrina in 2005, which caused $65 billion in damage (adjusted to over $101 billion in 2023 dollars).

While exact numbers from the latest storms are still uncertain, FEMA has already awarded $344 million to victims of Helen, which killed more than 200 people in six states. As of Friday, the death toll in Milton was at least 16.

Even before the pandemic, P&C insurers were struggling to maintain profitability, but premium rates have not kept up with rising costs, Worters said. The Institute’s three-year economic analysis of the pandemic shows that homeowner’s replacement cost inflation has increased by 55% and continues to rise, she said, increasing the price of insurance coverage.

If insurers are unable to meet their financial obligations, policyholders are left without coverage when they need it most.

Get started

As people begin the healing process, one of their first calls is to their insurance company, which can be “a very emotional time for people, some of whom have lost everything,” Worters said.

Some companies visit communities in disaster-affected areas and host events to connect policyholders and agents. Whether residents attend, make a call, fill out an online form, or download their insurance company’s app, the most important thing to do is get the ball rolling and open a claim as quickly as possible. It can take some time to complete the process and find a contractor – who may have difficulty obtaining supplies, causing further delays.

The right type of coverage is also necessary. There is a distinction between flood losses from rising waters and rain and damage from hurricane winds. While most of Helen’s destruction was due to flooding, Milton caused more losses from windstorms, Worters said. And if a home is in the crosshairs of two hurricanes, two separate claims will need to be filed, Worters said.

Understanding Coverage

Residents of eastern North Carolina certainly didn’t expect to be flooded by a hurricane. But even in regions that don’t typically experience powerful storms, wildfires or floods, climate change is undermining the expected.

Experts recommend that in addition to covering damages, residents ask about additional living expenses, such as food, baby supplies and lodging, when determining next steps. FEMA provides a $750 cash grant that does not have to be repaid and can provide immediate assistance.

Not only is it important to understand the extent of the losses, but it’s also crucial to know what’s covered, experts say. “The policyholder must read the policy. All of this. Each. Bachelor. Page. If they don’t understand something, talk to their agent or the company,” said Chantal M. Roberts, author, professor and expert witness for insurance companies and policyholders.

But the help doesn’t stop with private insurance payments. Other FEMA grants are available, and residents and businesses are also eligible for low-interest loans from the Small Business Administration to repair and replace their properties.

Landlords may not be required to compensate tenants for alternative accommodation, and it is recommended that tenants check their lease to see if they have credit for the number of days their unit is uninhabitable. Rental insurance can provide coverage – an inexpensive option that can prove valuable after a disaster.

Injuries and deaths are not covered by property insurance in most cases; these fall under health insurance and life insurance. However, insurance agents can advise you on liability coverage if a guest or renter is injured on a property during a hurricane.

Finances can get tricky

Some people may want to pick up and leave before repairs have been made and even before their insurance payment is made. It is possible, but not always favorable. There are complex tax calculations to be made, but residents may also be entitled to write off their losses. The IRS has granted a tax filing extension to residents of Alabama, Georgia, North Carolina and South Carolina, as well as parts of Florida, Tennessee and Virginia. May 1, 2025 is the new deadline for filing and paying taxes in these regions.

Homeowners can also benefit from mortgage forbearance for 12 months after a natural disaster and are advised to contact their lender to inform them of the condition of their home and their ability to pay. For an FHA-insured mortgage or for Native Americans under the Section 184 Indian Home Loan Guarantee Program, there is a 90-day moratorium on foreclosures.

More resources

If you have problems with insurance companies, a state insurance office can advise you on how to file a complaint. Not sure what to believe in online misinformation rumors? Check the facts on FEMA’s Hurricane Rumor page.

Sometimes a checklist is helpful to know the order of things. The National Association of Insurance Commissioners has a comprehensive website that includes information on what to do before and after a storm.