Getting Help From FEMA
The reasons for these price hikes and supply shortages are complex and numerous , experts say . Billions of dollars in claims have been filed , sometimes outpacing premium increases . According to the Florida Office of Insurance Regulation , nearly 260,000 residential claims were filed in the wake of Helene and Milton , and some 47,000 of them were denied without payment .
At the same time , construction costs have soared roughly 30 % over the past three years while the rates for reinsurance , which allows carriers to offset some of their liability , have jumped nearly 60 %, officials say . “ The economic effects of these events are not always understood by the general public ,” says Steve Parrish , a St . Augustine , Fla . -based professor and scholar at the American College of Financial Services . “ The steep increases in insurance costs , the expenses associated with new construction , and the strain on the power grid are not as newsworthy , but they are the real cause of people wondering if it ’ s time to leave the state .”
That ’ s just what many people appear to be doing . Government data shows a population shift in recent years as hurricanes have grown more destructive . According to the U . S . Census Bureau , Florida ’ s population was one of the fastest growing in the nation between 2021 and 2023 . During that time , its job growth outpaced the national average . Earlier this year , however , even before the most recent storms , the Florida Chamber of Commerce reported that the Sunshine State is losing people to neighboring states that have lower costs of living .
Earlier this year , a survey by Realtor . com taken just before Hurricanes Helene and Milton — but after Hurricane Debby , which hit Florida in early August 2024 — found steep declines in home prices throughout Florida . The metropolitan area defined by Tampa , St . Petersburg and Clearwater saw home prices drop 7 % year-over-year . Jacksonville faced declines of 6.4 %, while homes prices in the greater Orlando area fell 5 %.
The nation ’ s steepest declines in home values occurred in the metropolitan area encompassing Miami , Fort Lauderdale and Pompano Beach , the survey said , where average home prices plummeted 12.3 % year-over-year as of early October , the most recent figures available . Nationwide , the median home price was unchanged over that time . Meanwhile , homes for sale in Tampa are staying on the market 29 days longer than they did 12 months before , the biggest increase of all U . S . cities .
Getting Help From FEMA
Federal and state governments offer a complex network of assistance programs for disasters like the recent hurricanes in the Southeast . To benefit from these , however , communities have to prove they ’ re eligible .
For instance , to get help from the National Flood Insurance Program , which can help with flood damage that ’ s not covered by private insurance , Florida homeowners and their communities must meet certain standards . One requirement , the FEMA website explains , is that buildings have to be built or elevated at or above what ’ s called the “ base flood elevation ,” a measure that varies by specific region . Other requirements are that communities build seawalls and retaining walls ; install sump pumps ; and , if necessary , relocate utilities .
If you ’ re confused , FEMA offers a publication called the “ Homeowner ’ s Guide to Retrofitting .” It says , however , that permits are required for all rebuilding projects . Homeowners doing retrofitting work must contact local building officials who are responsible for enforcing elevation requirements .
Financial assistance is available for many affected individuals and communities . But again , there ’ s a complex network of programs to apply for . Here ’ s a sample :
The federal Small Business Administration ( SBA ) offers funding for the long-term rebuilding of disaster-damaged private property , through low-interest disaster loans . Qualified homeowners can receive loans of up to $ 500,000 to replace or repair a primary residence . The proceeds cannot be used for a second home or vacation property , says a statement from the SBA . For the replacement or repair of other personal property , such as clothing , appliances , furniture or a car , the borrowing limit is $ 100,000 . Businesses can borrow as much as $ 2 million to rebuild . Loans can only be used , however , to cover losses not fully compensated by insurance or other sources .
Federal and state tax collectors have also offered extensions and other forms of tax relief for individuals and businesses .
Experts say that people who were left unemployed by the Florida disasters can apply for “ disaster unemployment assistance .” To receive this benefit , you have to document that you aren ’ t eligible for standard unemployment insurance . If you ’ re approved , your benefits last up to 26 weeks .
Disaster-relief jobs and training services are also available in many counties affected by the storms for anyone who has been laid off . These are temporary jobs , mostly to deliver humanitarian assistance for those most in need .
If any of these programs seems suitable for your clients , whether they are homeowners or business owners , FEMA says the first step is to register at disasterassistance . gov . “ Success in disaster recovery requires local government and partnering community organizations to look comprehensively at recovery needs , set goals , and match those needs with the broad landscape of available federal , state and non-governmental resources ,” says the FEMA website .
But be warned . Eligibility and assistance from one source , it adds , can affect eligibility and assistance from another .
36 | FINANCIAL ADVISOR MAGAZINE | DECEMBER 2024 WWW . FA-MAG . COM