Why one insurance expert didn’t file a post-flood insurance claim

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As someone who writes about insurance and understands just how important it is for my and my family’s financial security, I’m still prone to the occasional blip in judgment.

I have car insurance, health insurance, and even pet insurance. I write about insurance for a living and am a certified insurance agent. I know the risks of going without insurance and am well-known to be risk-averse. But even I’m still prone to the occasional lapse in judgment — or moments where I hesitate to spend money on something I know I probably should.

The calm before the storm

When I moved from New York to Florida last summer, my budget was front and center. Yes, living in New York is expensive, but so is leaving it. When I moved into a cozy beach cottage merely steps from the water, renters insurance did cross my mind, but only briefly. I didn’t understand how serious hurricanes could get and even the risk-averse in me questioned the odds of getting hit by a major hurricane. And so, I decided to save my money and opt out of coverage.

Fast forward to September 25, 2024. Hurricane Helene’s direct path was north of where I live with my partner and two dogs, but the storm surge was still expected to reach us. Living on the beach, we were under a mandatory evacuation order. Health and safety came first, of course—but after booking a hotel, packing my belongings, and making sure I had all the dogs’ medications, the reality hit me: I could lose everything I own. I’m not particularly sentimental about my stuff, but I am realistic about how much it’s all worth and how much it would cost me to replace it.

So, a little too late, I tried to get renters insurance, which was nearly impossible. One insurer even sent me a notification saying I was trying to buy coverage in a location experiencing severe weather—and to try again in a week. After scouring the internet, I was finally able to buy coverage for $60 a month — well above the average monthly cost for renters insurance. Even though I knew how much I would saved if I had shopped around in advance, I bought the policy as I prepared for my first major natural disaster.

The aftermath of Hurricane Helene

Returning home after Helene was straight out of an apocalypse movie. As we drove into our little beach town — streets flooded, trees snapped in half, power lines dangling — we expected the worst. 

But we got lucky. A neighbor’s Ring camera showed that the water reached the top of our gate, but thanks to a very slight elevation, our house wasn’t totally flooded. However, enough water had entered the home. Our floors were warped and moisture was present in the walls, making the house uninhabitable. 

Our landlord was kind enough to terminate our lease and return our security deposit. Like many others who were impacted by the storm, we were displaced and looking for a new place to live. Meanwhile, rents had nearly tripled due to demand. After a week of living in a hotel, another stroke of luck hit us. We were able to find a temporary apartment to live in at a cost proportionate to our original rent, a rarity at the time.

How renters insurance saved me

In the end, I didn’t file a claim. 

I know, I know. You’re thinking, “Then how did it save you?”

To begin with, our damaged property wouldn’t have been covered since flood damage isn’t included in standard renters (or homeowners) insurance — we would have needed a separate flood insurance policy for that. And while we did incur some costs from being displaced, like hotel stays and other additional living expenses, renters insurance only covers those expenses if they’re tied to a covered claim. Since flood damage isn’t covered, ALE wouldn’t have applied unless we had private flood insurance that included it. At most, we might have received limited coverage for the initial evacuation order, depending on the policy.

Additionally, we plan to buy a home in the next year, and filing a renters insurance claim could lead to higher premiums for homeowners insurance coverage. After weighing the cost of a potential premium increase against the benefit of filing a claim, we chose not to file. We didn’t want to risk the uncertainty of how much higher a claim on our record would increase our homeowners insurance rates.

We got very lucky. Almost every home on my street was flooded, with neighbors who didn’t evacuate climbing to their roofs and fearing for their lives. Two-story houses were filled with water, trees had fallen into homes, and friends had hundreds of thousands of dollars in damages and additional living expenses. Comparatively, our expenses were much less. 

Even though we didn’t file a claim in the end, I don’t regret getting coverage because while we were evacuating a life-threatening storm, I didn’t have to worry about what would happen if the damage was more than I could financially take on. Even though it wouldn’t have covered flooding, it was still a relief knowing that if the wind or rain had damaged our stuff, we’d be okay. Having the safety net of renters insurance made a big difference in a really stressful situation.

That peace of mind is exactly why insurance matters. It’s not just about protecting your things; it’s about protecting your sense of security when life feels completely out of control.

Having that protection in place can mean the difference between recovering and starting over or facing a financial catastrophe you can’t bounce back from. It’s always better to have coverage and not need it than to need it and not have it.

Nupur Gambhir

Managing Editor

 

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Nupur Gambhir is an insurance expert and managing editor of Insure.com. She specializes in life and health insurance content, and has experience as a marketing consultant.