If your home or business has been impacted by severe weather and you’re unable to pay your mortgage, contact your mortgage company (the company on your monthly mortgage statement) as soon as possible. There may be options to help you recover financially and avoid foreclosure (more info).

The outcomes of hurricanes, wildfires, earthquakes and floods can be hard to predict, but with computer modeling of environmental data, experts can gauge the risk of their likelihood down to the property level, helping homebuyers, builders, investors and insurers understand the risk they may face building, rebuilding or buying a property.

After several recent severe storms, natural disasters are on people’s minds. A recent Zillow study found more than 80% of homebuyers are concerned about the “climate risk” of property locations.

Related: Struggling to Pay Your Mortgage? Help May be Just a Phone Call Away

The Number of Uninsured Homes Is Growing

In the aftermath of Hurricane Milton, Florida insurance regulators said insurers had reported more than $586 million in losses and some 44,000 claims. “We anticipate Hurricane Milton will be a double-digit billion-dollar loss event and the largest insured loss for any U.S. natural catastrophe in 2024,” Mark Friedlander with the Insurance Information Institute, told Politico.

Of course, those numbers don’t account for uninsured losses. The Insurance Information Institute (III) notes that many homes in the affected areas were uninsured, particularly in inland counties.

They also note that the number of uninsured homes is growing. In Florida, a frequent location of hurricanes and tornadoes, the Insurance Information Institute estimates that 13% of homeowners don't have insurance, higher than the national average of 7%. In Florida's high-risk flood zones, only 35% of homes have insurance. In Sarasota County, which took a direct hit from Milton, just 23% of residents have flood insurance.

While not legally required by most states, you will need homeowners (property) insurance if you have a mortgage (and own less than 20% of equity in your home) because lenders require it. If you own your home outright, you technically don't need insurance, but it's still a good idea to safeguard against losses from natural disasters.

Property insurance will likely cover damage from hurricanes and tornadoes.

Related: Do I Need Homeowners Insurance? Why or Why Not?

A “Quirk” of Insurance

As those affected by recent hurricanes, tornadoes and flooding may learn, their claims may be denied if their home was damaged by flooding.

A “quirk” in the home insurance market in the United States is that flood insurance is purchased separately from a homeowner’s insurance policy, which typically covers wind damage from hurricanes but not flooding they may cause. Homeowners must purchase flood insurance in addition to their homeowner’s insurance if they want to protect their home against damage from flooding.

In addition to flooding, homeowners insurance typically doesn't cover earthquakes and typical “wear and tear,” or damage from poor maintenance. Homeowners can often add flood and earthquake coverage to their policy, but “wear and tear” and damage from poor maintenance would be considered preventable and not insurable.

Related: Hurricane Preparedness

How We All Can Help

Homebuyers need to approach a home purchase knowing potential climate risks could happen at that location. Zillow is making this easier by listing climate data (provided by First Street) within every for-sale listing on the site. This data provides insights into flood, wildfire, wind, heat and air quality risk, complete with risk scores, interactive maps and insurance requirements, to provide a clear understanding of potential hazards.

If you already own a home, this is a good time to review your insurance policy and consider if you need additional coverage for floods or earthquakes, for example, depending on your location. You should also have a family emergency plan in place and nonperishable food and bottled water in case you are cut off from aid for several days.

If you live near a community impacted by the storm, you can help with cleanup and contact the American Red Cross or Salvation Army to find open shelters where you can donate or volunteer. You can also text SHELTER and your zip code to 4FEMA (43362) to locate an open shelter.

Donations of money, goods, or materials to a trusted organization are appreciated, especially cash donations so volunteers on the ground have the flexibility to purchase most-needed items. You can also donate items like non-perishable food, bottled water, clothing and hygiene products.

We use the words trusted organizations because, unfortunately, there are scammers out there already hoping to intercept donations. To avoid scammers, the Federal Trade Commission recommends searching on terms like “hurricane relief efforts near me” plus phrases like “best charity” or “highly rated charity.” Then, once you’ve zeroed in one one or two, before you commit, search their names adding terms like “fraud” or "scam” to see if there have been complaints filed about them.

Related: FTC Tips for IDing Fraudulent Charities

Of course, some of our Members are helping on the front lines already. In the wake of Hurricanes Milton and Helene, more than 11,000 National Guard Soldiers and Airmen were working alongside state emergency response agencies in hard-hit states to clear debris, transport and distribute water and relief supplies, and conduct search and rescue operations. Thank you!

Related: Hurricane insurance FAQ

What to Do If You’ve Been Impacted by a Natural Disaster

If you have been impacted by Helene or Milton, or another natural disaster, you are probably already in touch with your insurer. If you will miss your mortgage payment, though, it’s important to call your mortgage servicer right away to review your options.

If you originated your mortgage with AAFMAA Mortgage Services LLC (AMS), it’s likely your servicer is Servbank (formerly TMS Mortgage). They can be reached at (877) 206-8940.

We’re Here to Help

Whether you’re thinking about buying, ready to start home-shopping in earnest, or considering a refinance, an AMS Military Mortgage Advisor will be happy to provide you with an honest and fair comparison of your mortgage options, including a wide range of affordable mortgages designed to meet your needs.

Ensuring AAFMAA Members obtain the best mortgage possible is our mission. Get your free mortgage assessment today or give us a call at 844-422-3622!