Hurricane Debby Update: Navigating the Aftermath and Preparing for the Next Steps

Hurricane Debby Update: Navigating the Aftermath and Preparing for the Next Steps

On Monday, August 5th, Hurricane Debby made landfall in Steinhatchee, Florida, as a Category 1 hurricane with maximum sustained winds of 80 mph. The storm brought heavy rain, high winds, and significant flooding to many parts of Florida, causing widespread damage and prompting numerous rescue operations. By midday, Debby weakened into a tropical storm, but the threat is far from over.

As Debby continues to move through Georgia and South Carolina, it brings with it the risk of dangerous flooding and severe weather across the southeastern states, including our local Charleston area. Although wind speeds have decreased, the storm's impact is still being felt in many areas.

Potential Threats from Hurricane/Tropical Storm Debby

Hurricane/Tropical Storm Debby is expected to move very slowly over the Southeast, bringing prolonged periods of impact through mid-to-late week. The storm has the potential to deliver historic rainfall, with predictions of 10 to 20 inches and some areas possibly receiving up to 30 inches, leading to catastrophic flooding throughout the Southeast, Charleston areas, and beyond.

Additional Hazards

There is a risk of tropical storm-force winds causing significant damage in affected areas. In addition to high winds, storm surges may result in 2 to 4 feet of inundation in normally dry tidal and near-tidal regions, exacerbating the flooding risk. The threat of tornadoes also exists in certain areas, adding to the potential dangers residents face. Furthermore, the storm's slow movement could result in extended periods of river flooding, potentially complicating recovery efforts for many communities well into next week and beyond.

What This Means for Residents

While Florida is now clear of the storm, many regions experienced significant flooding and wind damage, leaving behind a need for extensive recovery efforts. As Hurricane Debby progresses towards the Carolinas and Georgia, residents in these areas should remain vigilant and prioritize their safety.

At VIP Adjusting, we understand the challenges that come with such natural disasters. If you're in Florida or South Carolina, including Charleston, and have been affected by Hurricane Debby, our team of experienced Public Adjusters is here to assist you with your hurricane claim.

As a Charleston Public Adjuster, we specialize in helping you navigate the complex insurance process to ensure you receive the support and compensation you deserve. Our services include comprehensive damage assessments, thorough policy reviews, and expert claims negotiation with your insurance company. We also coordinate emergency services such as tarping and water mitigation to help protect your property from further damage.

For residents in Florida and South Carolina, it's essential to stay informed and prepared as Hurricane Debby moves through the region. Remember to take necessary precautions and reach out to VIP Adjusting if you need help with your hurricane claim.

Stay safe and please reach us at our local offices in Florida and Charleston, South Carolina.

Valued Policy Law for Florida Homeowners Insurance Claims

When there's significant damage to your home, or your home can't be rebuilt, Florida's Valued Policy Law may justify payment of your policy's limits

It's no secret. Insurance companies hate paying claims, and it's no different throughout Florida when a home or commercial building is damaged by a sudden and accidental event. 

If the damage is so significant that the home may be a total loss, or a federal, state or local building code or regulation requires the property be rebuilt, it's no longer a time to nitpick the amount of the loss. 

In the experience of our public adjusters, insurance companies often ignore this law when this type of damage occurs, and it's more important than ever to have someone in your corner looking out for you. 

Florida's Valued Policy Law - Fla. Stat. 627.702

What is the Valued Policy Law? Fla. Stat. 627.702 says that "in the event of the total loss of any building, structure, mobile home..or manufactured building...in the absence of fraudulent or criminal fault on the part of the insured or on acting [on their] behalf, the insurer's liability under the policy for such total loss, if caused by a covered peril, shall be in the amount of money for which such property was so insured as specified in the policy and for which a premium has been charged and paid." 

What does that mean? Well, it means the if you're in Florida and you have property insurance and the property is a total loss because of a peril covered by the insurance policy, then the insurance company is supposed to pay you the policy limit listed on the insurance policy's declaration page.

Florida's Valued Policy Law dates back to 1899 and in short is a way to fix the price of a total loss so that an insurance company isn't withholding 90% of the insurance proceeds for months and months (or force a homeowner into litigation) to say the property was either overinsured or underinsured. 

It's worth noting that the Valued Policy Law does not apply when there's blanket coverage when two or more buildings are insured under a singular combined limit of insurance, but our public adjusters can check your policy for you and verify this. 

So what is a total loss?

Florida's Valued Policy Law doesn't specifically define the term "total loss" and that’s part of the reason insurance companies largely ignore it. Luckily, Florida's courts have defined the term and it can either have to do with the types and amount of damage to the home or building, the feasibility of repair, the application of laws, codes, and ordinances to the repairs, or all three. 

When evaluating the damages, the courts have created an "identity test" and a "restoration test" to evaluate whether a total loss exists under the VPL. For application of codes and ordinances, the courts have defined total loss under the "constructive total loss" test. 

The "Identity Test" to determine a total loss

The "identity test" to determine if a structure is a total loss says that if the damage to the structure is so severe that it has lost its identity and character as a building, even though a portion of the building's components remain and could be utilized for some useful purpose, then the property is a total loss.

This is a debatable test and can justify a dispute between your public adjuster and the insurance company. The property doesn't need to be a pile of rubble, but if the damages are so significant that the building isn't recognizable as the same building, even if parts of it are usable, then the identity test may apply. 

When looking at the before and after images of a home damaged by Hurricane Michael to the right, the insurance company tried to argue that because the home was still the same basic shape, it didn’t meet the criteria of the identity test.

Satellite image of a home in Panama City prior to Hurricane Michael in October 2018

The same home via drone after Hurricane Michael had caused damage, knocking down several exterior walls

The "Restoration Test" to determine a total loss

The "restoration test" is also subjective to some extent and is open for debate, but it is more clearly defined that a structure is a total loss if a reasonably prudent owner would not use the remains of the structure after the loss as a basis for restoring the building to its pre-loss condition.

This can mean a couple of different things, and your public adjuster can assist with these evaluations and make these arguments to your insurance company. It could mean that it costs more to repair the home than to demolish and rebuild, or it could mean that some components or structural elements of the property are questionable to include in repairs. This often happens either after a fire, where structural components were exposed to intense heat, or in the aftermath of a hurricane where huge wind forces or flood waters affected the building, but these aren't the only situations.

In addition to the damage pictured to the home above, the missing roof, the knocked down exterior walls, the cracked and leaning remaining exterior walls, and the water and mold in every building material “inside” what used to be the home, the wind also applied so much force to the hot water heater that it broke several copper plumbing lines inside the poured slab which would require significant trenching of the slab to repair.

"Constructive Total Loss"

A "constructive total loss" is the most definitive way to apply the Valued Policy Law. Under the "constructive total loss" test a building is a total loss when it is damaged by a covered peril and an ordinance or regulation prevents repair. 

The most common occurrence and application of this test is related to elevation requirements, either locally, or through FEMA's regulations regarding the National Flood Insurance Program.

Many areas of Florida, in response to a rise in sea level, are requiring homes be built at certain elevations. If a building pre-dated this regulation, once significant repairs are required because of a covered loss, the building department may require the home to be rebuilt at a higher elevation. This would be a constructive total loss. This is common in the Florida Keys, but also happens on throughout Florida for beachfront homes or properties on barrier islands, such as Jensen Beach.

More common than a local building requirement is the regulations from FEMA and the NFIP where, in order to be eligible for flood insurance, a home must be a certain amount above the areas Base Flood Elevation. Our public adjusters see these types of claims in the aftermath of hurricanes all the time. If a home sustains "substantial damage" exceeding 50% of the property's appraised value, then the property is required to be brought in compliance with the current regulations as the the base flood elevation. 

Substantial Damage Determination from a local building department

In addition to a hurricane, the constructive total loss test may come into play relatively easily for a mobile or manufactured home that is appraised at a relatively low value and might have a significantly lower policy limit. 

There's a lot to evaluate to determine whether damage to your home constitutes a total loss justifying the payment of your insurance policy's limits. Our public adjusters have been through these situations many times and can explain the process as it applies to your specific situation, and present information to your insurance company on your behalf. If you think your home may have sustained enough damage to constitute a total loss, call or contact VIP Adjusting's public adjusters today for a free claim review.  

You might also be interested in:

Hurricane and windstorm claims

More reasons you should hire a public adjuster

If your home is a total loss, the homeowners insurance deductible should be absorbed

Additional Living Expenses (in the midst of a natural disaster)

Additional Living Expenses, sometimes referred to “ALE,” “Loss of Use.,” or Coverage D is a coverage under most homeowners insurance policies that affords compensation in the event of a loss when an insured location, or a part of that location, is not fit to live in or use for its intended purpose.

It can cover a number of things, but is generally an intuitive coverage that operates on the common insurance principle of making an insured “whole.” That means you should be put back in the same, or as similar as possible of a position as you were in before the loss occurred.

With regard to living expenses, incurred costs (yes, you typically MUST spend this figure up front and be reimbursed afterwards) necessary to maintain your normal standard of living is paid, up to the policy limits.

What does this mean in general? If a part of your house is not functioning, say, your kitchen plumbing, and you typically cook your meals at home, you would be reimbursed for meals eaten at restaurants (excluding alcohol, which makes sense, and often excluding tip, which makes less sense) for the shortest possible time to get the kitchen functioning again. Sometimes, this amount may be more accurately calculated as the difference between your average grocery bill and the amount you spent at a restaurant.

If all of your house is not habitable, because there’s no power, it’s not secure after a theft, you have health concerns related to moisture, it’s unsafe after a fire, etc., there are significantly more things that are covered. A short term rental or hotel stay may be in the cards. Or maybe longer. If you have pets, you may be entitled to a more expensive rental that will accommodate those pets, or boarding costs. If you can stay with a relative and you are paying rent or bills, you are entitled to that reimbursement IF you are actually paying it (Please do not write a check that no one ever intends to cash. That is fraud.) If you have to travel additional miles to work or other places you regularly commute, you are entitled to fuel or mileage. There’s more, but these are the most common.

So what about in the aftermath of a hurricane or other disaster causing widespread damage? How do you deal with a dwindling supply of rental properties or hotel rooms?

This was a large problem in the aftermath of hurricane Michael. One of the easiest ways around the problem, if you can be accommodated by it, is to obtain a trailer or camper.

With limited supply of available rentals or hotels, and a skyrocketing price that quickly eats up your policy limit, a trailer or camper can be brought in from anywhere and be had at a semi-reasonable price.

BUT…

You aren’t supposed to be able to BUY a trailer or camper. Why not? “My neighbor got one,” someone might say. Your insurance is supposed to make you whole, not better. You’re supposed to be put back in the same position as you were before, and not a better one.

If you didn’t have a trailer or camper before, and you buy one, you’re in a better position.

HOWEVER…

If you’re hemorrhaging money on a rental or hotel and you’re definitely going to exceed your coverage, you may be mitigating your damages by buying a trailer or camper. You might be “better” but you’re fulfilling a policy duty to prevent damages and saving your insurance company money at the same time.

This type of purchase can be approved, but a cost benefit analysis would need to be done and presented to the insurance company for approval first.

If you’ve found yourself with damage in your home that makes it unlivable, or where the home is uninhabitable during the repairs of damage, contact VIP Adjusting to discuss your options to maximize recovery for your claim.

You might also be interested in:

Learning more about Additional Living Expenses and Loss of Use Claims; or

More information about Hurricane Claims