Florida homeowners fear the worst as Hurricane Milton nears

An
increase
in
demand
for
disaster
relief
loans
or
refinancing
could
emerge
as
homeowners
look
to
rebuild
or
relocate
in
the
aftermath
of
the
storm.

Sherman
said
many
homeowners
are
likely
to
experience
significant
distress
as
a
result
of
the
hurricane. “I
think
the
first
thing
everyone’s
going
to
do
after
the
storm
passes
is
call
their
insurance
companies,”
he
said. “They’re
going
to
start
asking, ‘How
bad
is
the
damage?
How
soon
can
I
get
an
adjuster
out
here?'”

The
grim
reality,
according
to
Sherman,
is
that
many
people
are
woefully
unprepared
for
a
disaster
of
this
scale.
A
common
question,
he
said,
will
be:
What
happens
if
my
house
is
destroyed,
and
I
have
to
rent
somewhere
else?
I
can’t
make
both
my
mortgage
and
rent
payments.”
With
nowhere
to
go,
and
no
clear
idea
of
what’s
covered
by
insurance,
many
homeowners
are
left
helpless,
asking
questions
that
have
no
easy
answers.

“Hurricanes
like
this
bring
a
flood
of
uncertainty,
not
just
water,”
Sherman
said. “You
have
people
who
may
not
even
have
enough
coverage
to
rebuild,
let
alone
find
temporary
housing.”
And
then
there’s
the
matter
of
flood
insurance—mandatory
in
many
parts
of
Florida
but
shockingly
inadequate
in
some
cases.
Most
policies
cap
at
$100,000
for
flood
damages,
which,
Sherman
pointed
out,
won’t
even
scratch
the
surface
in
areas
where
homes
are
worth
ten
times
that.
“Most
people
are
really
underinsured
when
it
comes
to
flood,”
he
added.

The
growing
threat
of
natural
disasters
has
seen
plenty
of
insurance
companies
leave
the
state.
“In
places
like
Florida,
windstorm
insurance
is
very
hard
to
get.
Insurance
companies
are
pulling
out
because
the
risks
are
just
too
high,”
Sherman
said.
It’s
a
vicious
cycle—disasters
strike
more
often,
insurers
flee,
and
homeowners
are
left
paying
astronomical
premiums
for
inadequate
coverage.
And
this
time,
Hurricane
Milton
could
be
the
tipping
point.