In the last year, extreme floods, fires, and storms wreaked havoc around the world. 

For the victims of these disasters, a whole other nightmare awaits them once the flames are contained and floodwaters recede — dealing with insurance companies. 

What's happening?

According to a Kiplinger report, many Americans are struggling to recover insurance funds for damaged property and belongings in the wake of disasters. Others are outright losing their coverage. 

Kiplinger spoke with four families impacted by recent extreme weather events across the country: Hurricane Helene, Hurricane Milton, and the Los Angeles wildfires. Each one hit communities hard, and afterwards, people went looking to their insurers for help. 

Yet they were often met with processing delays and extra hoops to jump through. For example, the Seltzer family in Los Angeles lost their house in one of the blazes. They received some relief funds up front, but had to wait several months and follow up multiple times to get their rebuilding coverage to kick in, Kiplinger reported. 

The Ford family's home in St. Petersburg, Florida, was three feet underwater during Hurricane Helene, but their homeowners' insurance did not cover flooding. They had a private policy that came in handy, but that insurer cancelled the coverage months later, meaning the Fords must now rely on federal programs. 

The Clarks, also Floridians, planned to retire to their cabin in Fairview, N.C., until it was swept up in a Helene landslide. They are unable to get much disaster relief since it was technically their second home, Kiplinger explained.

Meanwhile, the Gabbards had to fork over a pricey deductible to receive any insurance funds at all after a large tree destroyed about one-third of their St. Petersburg home. 

Why do these insurance stories matter?

What these four families are experiencing is becoming far too common. It all comes back to the fact that relying on dirty fuel for energy is causing global temperatures to rise, which is causing a major uptick in dangerous weather events. 

The period of these disasters in the United States between January 2024 and January 2025 was the most expensive in nearly a century, totaling between $700 billion and $800 billion, per AccuWeather.

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As a result, insurance companies are trying to get out of high-risk areas, raise prices, and avoid paying out to policyholders when possible. In other words, extreme weather not only destroys homes and natural habitats — it can also mean being left in the lurch afterwards, or even losing it all. 

How can people prepare and stay protected in the face of disasters?

Luckily, there are plenty of examples out there to learn how to prepare for these sticky insurance situations. 

Brandi Gabbard advised checking your policies every couple of years to be sure your coverage still makes sense and that you have enough. Taking regular photos of your home is also a big help in the event of a disaster, she explained. 

"It's so important that people understand the risk that is associated with our climate changing," Gabbard told Kiplinger. "Every place is vulnerable."

Documentation for any lost or damaged valuables is also important for filing claims and fighting back against denials. 

"Be your own advocate, and don't take no for an answer," Rob Seltzer told Kiplinger. "I can't emphasize it enough."

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