Like so many affected by the trinity of hurricanes Frances, Ivan and Jeanne, families in Peeks Creek are now trying to resolve insurance battles while cleaning up the debris left behind by floodwaters.

Insurance companies have turned down many claims, citing a lack of flood insurance. Homeowners insurance is proving useless as well, as policies fail to cover disasters like Peeks Creek. Though a team of researchers has declared the incident to be a debris flow, not a flood, it is still not covered.

“Any sort of earth movement is excluded,” said Chrissy Pearson, Director of Public Information with the N.C. Department of Insurance.

However, some homeowners in the Peeks Creek community are poised to file suit against their insurance companies should state and federal compensation dollars not come through. Homeowners are not speaking in detail about the potential suit, but are hoping for settlements that will at least allow them to rebuild. The debris flow caused by Hurricane Ivan on the night of Sept. 16 displaced 17 families, destroyed 15 homes and caused $1.7 million in damages.

Pearson said that coverage and settlement will come down to a policy-by-policy basis and that there is nothing the Department of Insurance can do to facilitate claims being accepted.

“We don’t have the legal authority to do that,” Pearson said.

The department has not interfered with previous insurance claims as a result of hurricanes, Pearson said, as doing so would be a pick-and-choose process that would be unfair to other policyholders.

“The silver lining behind this cloud is the educational value for other citizens,” Pearson said.

Pearson encouraged homeowners to consult with department officials about what types of policies cover which items and events. Homeowners may contact the department at 1.800.546.5664.

Also, Pearson said that homeowners may or may not see an increase in their homeowners insurance premiums as a result of the flood damage caused by Hurricanes Frances and Ivan. Increases are administered by the N.C. Rate Bureau. Rates are based on data that is between three to five years old, Pearson said. The last rate increase occurred in 2002.

However, Pearson said that rate increases usually come about in areas where several claims are paid out, thereby an increase may not be an issue since many insurance companies are denying claims made regarding hurricane damage.