Is There an Insurance Policy for an Insurance Company Stiffing You?

Mortgage companies require homeowners to have casualty insurance on their home as a part of the lending contract. But what if the insurance proves to be worthless when the homeowner needs it the most?

Many Florida homeowners are finding out to their dismay just what happens after suffering the double whammy of Hurricane Milton and Hurricane Helene.

NBC News brings us the story of Florida resident Bridgette Bello. She tried to be a good citizen and responsible homeowner.

She had the standard homeowner’s insurance coverage and, because she lives in Florida, Bello paid for an additional "hurricane-specific policy" and another flood insurance policy.

The only coverage we can see she lacked was an earthquake policy, but who needs that in Florida?

"We did everything we were supposed to do," said Bello, who lives near the barrier-island Madeira Beach community outside of Tampa.

"We did everything to protect ourselves and protect our home."

This presumably "comprehensive" coverage put Bello way ahead of most Florida residents.

As NBC reports, "In the areas of Florida most affected by the storms, no more than 25 percent of residents had separate flood insurance prior to the storms hitting, according to an NBC News analysis of U.S. government data."

Bello should have been bullet- proof regardless of the weather’s fury.

We think of hurricanes as wind destruction followed by rain damage.

But we’re not bean-counting insurance adjusters.

In Florida’s case, Helene damage is being termed flooding and 75% of residents don’t have flood coverage so insurance companies are off the hook.

And in the case of Milton, insurance companies are putting their collective thumbs on the scales to deny coverage.

"In particular, adjusters will have to determine whether any water damage from Milton came in 'from below,' which could then be classified as flood damage; or 'above,' as a result of wind-driven rain, said Mark Friedlander a paid mouthpiece for your friendly Insurance Information Institute.

"Yet even in the latter case, coverage may be denied if it was determined the rain intrusion was the result of pre- existing maintenance failures, like a leaky roof or improper insulation. Many policies also exclude wind-driven rain as a matter of course."

So much for "Like a Good Neighbor" and it looks like you just slipped out of "The Good Hands People."

But what about our solid citizen Bridgette Bello?

In a word . . . she’s toast.

The flood insurance program she put her faith in is run by the feds.

And even in the event of a total loss, the policy will only cover losses up to 50% of what the structure was worth.

"As a result, Bello and her husband are expecting no more than $190,000 to repair their home, which they said was worth at least seven figures based on similar sales in their neighborhood.

"The NFIP also does not provide any funds for temporary housing relocation, so the couple had to pay out of pocket to find accommodations in the meantime."

Should Bello have read the policy more closely?

Maybe, but where would she have found a company to cover the other 50% of her home?

It could be that living near the shore in a hurricane-prone area is a luxury that should be limited to people rich enough to pay for 100% of their own losses.

Or it could be that insurance companies shouldn’t be so sleazy.

In the 1970s and 1980s many state level politicians got their careers started by running against insurance companies and the perceived abuses of insurance companies.

It could be that we’ll be seeing this trend start again.

(A related article may be found here.)

Michael Reagan, the eldest son of President Reagan, is a Newsmax TV analyst. A syndicated columnist and author, he chairs The Reagan Legacy Foundation. Mr. Reagan is an in-demand speaker with Premiere Speaker's Bureau. Read Michael Reagan's Reports — More Here.

Michael R. Shannon is a commentator, researcher for the League of American Voters, and an award-winning political and advertising consultant with nationwide and international experience. He is author of "Conservative Christian's Guidebook for Living in Secular Times (Now With Added Humor!)" Read Michael Shannon's Reports — More Here.