While this is good for residents of the Southeast, it also is welcome news to the thousands of adjusters who were dispatched to the affected areas, and who had been sleeping in RVs and motels after putting in long hours inspecting damaged properties. State Farm Insurance, one of Florida's largest homeowner carriers, has reduced its adjuster force by more than half. “At the height of the claim-settling process, we had brought in about 3,000 adjusters from around the country,” said Tom Hagerty, of State Farm's Florida Zone Office. “There are still lots of adjusters, but it's down to around 1,400. We expect that number to decrease every month.” Approximately 99 percent of State Farm's claims have been inspected, while more than 90 percent have been closed, he added. “Some claims will reopen for replacement cost benefits and for estimate reconciliations once contractors actually begin to complete the work,” Hagerty said. “We do expect to have a minimal catastrophe staff around for up to a possible two years.”

Floridians also will benefit from recent legislation providing reimbursement to the nearly 36,000 policyholders who paid more than one full hurricane insurance deductible as a result of the four storms. Under the terms of the legislation, $150 million will be borrowed from the Florida Hurricane Catastrophe Fund to provide financial assistance to consumers, in the form of grants up to $10,000. The catastrophe fund will be repaid over five years through a $30 million annual increase in premiums that insurers will pay to the fund beginning in 2006. In addition, the bill establishes a program in which homeowners would pay only one hurricane deductible beginning next May.

“Because of the financial devastation these people have suffered, they may not be able to rebuild or repair their homes,” said Florida's Chief Financial Officer Tom Gallagher, who had advocated the legislation. “The consequences of such a scenario could be financially devastating to the economy of this state.” Applications for reimbursement were scheduled to be mailed after the first of the year, and must be completed, signed, and filed by March 1. “I encourage those who are eligible to submit their applications as soon as possible so that we can get them the financial assistance they need to start rebuilding,” Gallagher said.

Hagerty downplayed the impact of the legislature's action. “It will have some effect, although the actual percentage of our customers who were subject to multiple deductions was about 1 percent of claims filed,” he said. “In the bigger picture, it wasn't perhaps as large a problem as some people had feared it would be.”

In early January, Florida's senate and house formed a Joint Select Committee on Hurricane Insurance, charged with studying aspects of the residential insurance market in light of the potential $20 billion in losses from the 2004 storms. Among the issues that the committee was expected to examine were multiple deductibles and their effect on premiums, particularly for condominium associations. The committee also intended to consider recommendations on the appropriate level of the retention rate, proper funding of the Florida Hurricane Catastrophe Fund, and options to reduce the size of Citizens Property Insurance Corp., the state insurer of last resort, while still providing coverage at a fair price.

Got Contractors?

Nearly five months after the Southeast suffered record hurricane landfalls, many residents are still waiting to have their damaged roofs repaired. The Disaster Contractors Network, a trade group for professional contractors, offers advice to those still seeking professional restoration and repair work.

The DCN web site, www.dcnonline.org, provides a link to the state of Florida database, allowing homeowners to confirm contractors' licensing status. Other topics covered on the site include information about hiring contractors, price gouging, shingle roof best practices, and mold.

Crisis Counseling Available For Stressed Floridians

The effects of four hurricanes, combined with delays in finding contractors and materials to complete repairs, have left many storm victims feeling ill prepared to cope.

“Unsolved problems caused by disasters can wear people down emotionally,” said Craig Fugate, state coordinating officer of the Florida State Emergency Response Team. “It is understandable if some residents are stressed or grieving and need to speak with someone confidentially.”

Stress from job loss, home displacement and repairs, and loss of belongings or loved ones can linger and appear weeks or months after a traumatic event, the Federal Emergency Management Agency noted. Such changes in routines may cause adverse reactions, such as fatigue, anger, depression, loss of appetite, sleeplessness, headaches, nausea, hyperactivity, inability to concentrate, and increased alcohol and drug use.

FEMA is offering professional counseling through the state of Florida's Department of Children and Families and Project HOPE. Victims can call the toll-free Crisis Counseling Hotline at 866-518-1825.