North Carolina Issues Urgent Reminder on Fair Claim Handling for Hurricane Helene Victims

As North Carolina continues to rebuild from the devastation caused by Hurricane Helene, Insurance Commissioner Mike Causey issued a critical memorandum yesterday, reminding insurance companies of their obligation to handle claims fairly, promptly, and transparently. The memo comes as frustrations mount among storm victims, many of whom are grappling with delays, denials, and underpayment of their claims.

A Storm Like No Other

Hurricane Helene made landfall in Florida in late September 2024 and swept northward, bringing catastrophic rainfall and record-breaking flooding to western North Carolina. Communities like Asheville, Swannanoa, and Lake Lure were hit especially hard, with Busick recording an astonishing 30.78 inches of rain. Tragically, the storm resulted in over 100 fatalities and more than $59.6 billion in damages, making it the deadliest and costliest hurricane in the state’s history.

Despite the scale of destruction, a startlingly low percentage of homeowners had flood insurance—less than 3% statewide. As a result, many residents have been left to navigate a difficult claims process without the safety net they desperately need.

Mounting Insurance Complaints

In the months following the storm, the North Carolina Department of Insurance has been inundated with consumer complaints. Homeowners and business owners report that insurers are:

• Delaying claim investigations and payouts.
• Offering settlement amounts far below the true value of losses.
• Denying claims without conducting reasonable investigations.
• Creating confusion over coverage, especially regarding flood versus wind damage.

According to a recent report, as of January 2025, only 32.4% of private flood claims had been closed, highlighting the widespread delays in recovery.

A Pattern of Industry Misconduct

This memo marks at least the third time since Hurricane Helene that insurance carriers have been reminded of their obligations. In November 2024, Commissioner Causey issued an earlier bulletin stressing that insurers cannot penalize consumers who file claims. Around the same time, national attention turned toward insurance misconduct, with Senator Josh Hawley calling the widespread denial of disaster claims “morally obscene” and demanding accountability from major insurance companies.

These repeated warnings illustrate a troubling pattern where insurers delay, underpay, or deny legitimate claims—adding hardship to families and businesses already facing overwhelming loss.

Key Points from the Commissioner’s Memo

The April 24 memo from Commissioner Causey emphasizes several critical requirements for insurers, citing General Statute § 58-63-15:

• Prompt acknowledgment and response to communications regarding claims.
• Implementation of reasonable standards for claim investigations.
• Good faith efforts to resolve claims promptly and fairly.
• Avoiding settlement offers that are unreasonably low.
• Preventing unnecessary delays even when coverage disputes arise between insurers.

The Department warned that it is closely monitoring claim handling practices and will take enforcement action against insurers found violating the law.

What This Means for Policyholders

For victims of Hurricane Helene, the memo offers reassurance that the Department of Insurance is advocating for fair treatment. However, consumers are still encouraged to be proactive:

• Keep detailed records of all communications with insurers.
• Request explanations in writing if claims are delayed or denied.
• Seek assistance from the Department’s Consumer Services Division if necessary (CSD@ncdoi.gov or 855-408-1212).

Advocacy Efforts Continue

Organizations like the American Adjuster Association (AAA) continue to advocate for policyholder rights, pushing for reforms that ensure fair claim handling and greater accountability in the insurance industry. The aftermath of Hurricane Helene highlights the urgent need for stronger consumer protections and better access to representation during the claims process.

Key Takeaways Regarding Hurricane Helene Claims

As recovery efforts continue, the American Adjuster Association urges all victims of Hurricane Helene to remain vigilant, understand their rights, and seek help when facing unfair insurance practices. Together, we can push for a system where policyholders are treated fairly and compassionately—especially in their moments of greatest need.