Reed Smith Client Alerts

Industry insured losses for Hurricane Maria are estimated to be between US$40 billion and US $85 billion. Puerto Rico, alone, will account for more than 85% of the loss. Individuals impacted by Hurricane Maria will generally have claims relating to flooding of their homes and/or automobiles. For homes, the entire floor of flooding must be cleared of impacted carpet/flooring, cabinets, dry wall up several feet, appliances, and personal property. Construction to repair flooded homes is expected to take 5-12 months and individuals will need to obtain temporary housing for a prolonged period of time.
Hurricane between Florida and Cuba

Flood Insurance

Estimates on the numbers of homes flooded or destroyed in Puerto Rico have been difficult to ascertain, however, the damage is expected to be significant, unprecedented and widespread. Many Puerto Rican homeowners will not have insurance to help with rebuilding in the wake of Hurricane Maria. Even if they do, the standard homeowners insurance policy will not cover flood damage, but may cover wind damage. Moreover, fewer than 1% of Puerto Rico’s 1.6 million housing units have coverage from the U.S. National Flood Insurance Program. Homeowners’ will likely have to rely on their own money or FEMA assistance.