Tag: Hurricane Insurance Premium

Are You Ready for the 2014 Hurricane Season?

For those living or working in the Atlantic hurricane region, June 1st rarely passes unnoticed. At Setnor Byer Insurance & Risk, we understand that preparing for hurricane season is rarely easy and often stressful. We also understand that a lack of awareness and preparation can lead to disaster, and that the best way to limit the risks posed by hurricanes is to take preventative steps.

The National Oceanic and Atmospheric Administration’s 2014 Atlantic Hurricane Outlook predicts a 50% chance of a below-normal season, a 40% chance of a near-normal season and only a 10% chance of an above-normal season. According to NOAA, the 2014 hurricane season will bring:

  • 8 – 13 Named Storms (winds of 39 mph or higher)
  • 3 – 6 Hurricanes (winds of 74 mph or higher)
  • 1 – 2 Major Hurricanes (winds of 111 mph or higher)

These numbers are near or below the 1981 to 2010 seasonal averages of 12 named storms, six hurricanes and three major hurricanes. “Though we expect El Niño to suppress the number of storms this season,” NOAA administrator, Dr. Kathryn Sullivan, reminds us that, “it’s important to remember it takes only one land falling storm to cause a disaster.”

The 2014 hurricane season will also see changes in the information provided by the National Hurricane Center, including:

  • A smaller tropical cyclone forecast cone
  • The addition of a Potential Storm Surge Flooding Map, which will highlight areas where storm surge inundation could occur and the height above ground level that the water could reach
  • The elimination of the Intensity Probability Table due to misleading estimates of landfall intensity and excessive reliance on these estimates by the public

Though different situations call for different measures, here are some tips that can help you weather a storm.

Before the Storm

  • Monitor the news to allow time to prepare.
  • Identify all tools and equipment that will be needed to secure property before a storm and limit the damage after the storm (flashlights, batteries, caulking, tarpaulins, sandbags, cutting and fastening equipment, etc.).
  • Clear drains and downspouts to minimize the risk of flooding.
  • Move items inside.
  • Unplug electrical equipment and move property away from windows.
  • Check and secure all documents and records.
  • Take or update photographs of real and personal property.
  • Gather insurance policies and agent/insurer contact information.

After the Storm

  • Only after it has been declared safe to do so, take reasonably necessary steps to protect against any further property damage.
  • Report fallen power lines to power company immediately—stay away from them!
  • Check exterior walls and roof for damage from wind, rain, flying objects and rising waters (flood insurance).
  • Check all interior perimeter walls, floors and roof for leaks and water damage.
  • Document all damage with photographs and video.
  • Prepare detailed damage reports.
  • Call your insurer or agent as soon as possible to report damage.

While preparing for Hurricane Season is never easy, our team of experienced and responsive professionals can work with you to make sure that your personal and business property are protected in the event of a hurricane. With over 30 years of experience dealing with tropical storms and hurricanes, Setnor Byer Insurance & Risk has a long history of helping our clients prepare before the storm and, more importantly, providing support through the process of rebuilding after the storm.

If you would like more information about protecting your personal and business property during the 2014 Hurricane Season, please contact us.

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Ordinance or Law Coverage Video From Tower Hill® Insurance

Hurricanes have led to significant building code changes in Florida. Ordinance or Law Coverage provides for the additional cost to bring a building up to current building codes when significant repairs are needed. One of our Insurance Carriers, Tower Hill Insurance Group has created a great video explaining the importance of Ordinance or Law Coverage and the different options available for this product. If you would like to learn more about this coverage please contact us.

https://youtu.be/WJGnqgBEI_Y

Below please find the transcript from the video featured in this article.

Hi I’m Joel Curran coming to you from the Gainesville, Florida offices of Tower Hill Insurance Group. With me today is Heidi Moore, the Claims Manager. Heidi’s been with Tower Hill for 15 years.

Do you know if your homeowner’s insurance policy covers you for Ordinance or Law? If you’re like most people, you’re not sure what this coverage is, let alone know if your policy includes protection from this exposure.

Ordinance or Law coverage provides for the additional costs to bring a building up to current building codes when major repairs are needed.

Florida has implemented significant building code changes over the past few years largely due to our experience with hurricanes. If your home was built before the code changes and it needs repairs, the repairs are often needed to be done according to the new building code.

Heidi, in your experience, you’ve had many real life situations where customers had the Ordinance or Law coverage and sometimes they did not.

Yes, we recently had a 1994 home that had tornado damage. They had plenty of coverage to repair the home, but had a code issue with the pool enclosure.

Tell us more about that code issue.

Well the policyholder had minor damage to the pool enclosure, but due to the Post-hurricane Wilma codes, they had to replace the pool enclosure. This would be an additional cost of $17,000.

And did the people have the adequate coverage? In this case they did because they chose the 25% option. They had $82,000 in Ordinance or Law to go towards the replacement of the pool enclosure. The additional cost for them was $17,000 but due to the fact that they had this, they did not have to incur the expense themselves.

So they were a satisfied customer?

They were very satisfied.

Heidi, have you had situations where the customer had to incur the additional costs themselves?

Unfortunately, yes. We had a 1987 home that was struck by lightning and this lightning caused a fire loss. There was damage to the interior and exterior of the home.

And what was the building code issue?

In this case the home was located in a coastal flood area. The Ordinance or Law stated that the homes had to be at 8 feet elevation, this particular home was at 4 foot elevation. Therefore we had to raise the foundation an additional 4 feet.

And what was the additional cost? The additional cost for this policyholder was $35,000.

And they did not have the coverage?

Unfortunately, they did not. They had selected the 0 option. So they had plenty of coverage for the fire damage, but they had to incur – at their own expense- the coverage for raising the elevation.

You can check your policy Declarations page to see what option is included. You should see a percentage figure that applies to the amount you insure your home for.

Not all policies are identical; some include 10% Ordinance or Law coverage unless you select another option. But usually you have the option to select 0% or none, 10%, 25% or 50%.

Florida statutes require insurance companies to get your signature for selections other than 25% and to notify you of your options at least every 3 years.

At Tower Hill, a look at recent new business shows that most of our customers purchase 25% Ordinance or Law coverage. A small number select 10% and 50% but close to 1 in 5 select the 0% option.

There are policy conditions and exclusions that apply and your agent is the best person to contact to explain these and to advise you on your selection. At Tower Hill, we want you to have the coverages you desire so if the unfortunate claim does occur, we are there for you. We want to help you get safely back in your home as soon as possible. We’ve been doing exactly that for 40 years.

Are You Ready for the 2013 Hurricane Season?

For those living or working in areas at risk of experiencing a tropical storm or hurricane, June 1st rarely passes unnoticed. At Setnor Byer Insurance & Risk, we understand that preparing for Hurricane Season is rarely easy and often stressful. We also understand that a lack of awareness and preparation can make a bad situation worse, and that the best way to limit the risk is to take preventative steps now.

The National Oceanic and Atmospheric Administration (NOAA) estimates a 70 percent probability that the 2013 Hurricane Season will bring:

  • 12 – 18 Named Storms (winds of 39 mph or higher)
  • 6 – 10 Hurricanes (winds of 74 mph or higher)
  • 3 – 6 Major Hurricanes (winds of 111 mph or higher)

These estimates indicate that activity will exceed the seasonal average of 11 named storms, six hurricanes and two major hurricanes.

According to NOAA administrator Jane Lubchenco, Ph.D., “the United States was fortunate last year. Winds steered most of the season’s tropical storms and all hurricanes away from our coastlines…However we can’t count on luck to get us through this season. We need to be prepared, especially with this above-normal outlook.”

Though different situations call for different measures, the following tips can assist you in developing your own plan for dealing with the 2013 Hurricane Season.

Before the Storm

  • Monitor the news to allow time to prepare.
  • Identify all tools and equipment that will be needed to secure property before a storm and limit the damage after the storm (flashlights, batteries, caulking, tarpaulins, sandbags, cutting and fastening equipment, etc.).
  • Clear drains and downspouts to minimize the risk of flooding.
  • Move items inside.
  • Unplug electrical equipment and move property away from windows.
  • Check and secure all documents and records.
  • Take or update photographs of real and personal property.
  • Gather insurance policies and agent/insurer contact information.

After the Storm

  • Only after it has been declared safe to do so, look for any property damage and take reasonably necessary steps to protect against any further damage.
  • Report fallen power lines to power company immediately–stay away from them!
  • Check exterior walls and roof for damage from wind, rain, flying objects and rising waters (flood insurance).
  • Check all interior perimeter walls, floors, and roof for leaks and water damage.
  • Document all damage with photographs and video.
  • Prepare detailed damage reports.
  • Call your insurer or agent as soon as possible to report damage.

While preparing for Hurricane Season is never easy, our team of experienced and responsive professionals can work with you to make sure that your home, cars and property are protected.

For over 30 years, Setnor Byer Insurance & Risk has been helping our clients prepare before the storm and rebuild after. Our clients benefit from a Hurricane Insurance Program that includes an emergency and after hours claims service hotline in addition to guidance for disaster planning.

If you would like more information about how Setnor Byer Insurance & Risk can help you prepare for the 2013 Hurricane Season, contact us.

If you would like to subscribe to our newsletters please click here.

Lowering Your Hurricane Insurance Premium

Many homeowners believe that switching insurance companies is the only way to save on their windstorm (hurricane) insurance premiums. Unfortunately, companies with the lowest premiums may not have enough money to pay claims after a storm. Rather than buy insurance from an insurance company without the capital to pay losses, homeowners can reduce their premiums by taking advantage of wind mitigation credits.

Wind mitigation credits are premium discounts based on the ability of a home to tolerate strong winds without experiencing damage. According to one estimate, if homes were constructed in a manner beyond that which is currently required by building codes, the average losses per year would be reduced by over 70%. This is why increasing a structure’s wind resistance, or hardening, allows homeowners to save on their windstorm insurance premiums.

Homes built or retrofitted to incorporate specific mitigation features designed to increase wind resistance may qualify for wind mitigation credits. Insurance companies consider numerous factors when determining the availability and amount of wind mitigation credits, such as:

  • Roof Covering: Is the roof covered by shingles, clay tiles, metal, built-up tar, membrane, gravel or other material that meets or exceeds building codes?
  • Secondary Water Resistance (SWR): Is there a layer of protection between the roof covering and the roof decking (plywood, metal panels, etc.) that protects the home if the roof covering blows off?
  • Roof Deck Attachment: How is the roof decking connected to the roof trusses or rafters?
  • Roof-to-Wall Attachment: How are the walls connected to the roof trusses or rafters (toe nails, clips, single or double wraps, etc.)?
  • Roof Geometry: What is the shape of the roof (hip roof, flat roof, etc.)?
  • Opening Protection: How are openings, such as windows, doors and skylights protected against flying debris (shutters, hurricane glass, etc.)?

Mitigations features must meet very specific guidelines to qualify for credits. For example, the availability of a wind mitigation credit can depend on the size, spacing and number of nails used in the roof deck or roof-to-wall attachment. Credits will not be awarded unless there is strict compliance with applicable building codes, laws, regulations or standards.

The first step to getting a wind mitigation credit is to get the home inspected. Wind mitigation inspections, which typically cost less than $250 and take about an hour, are often done by licensed building inspectors, contractors, architects and engineers. However, since state laws and specific insurance company requirements may dictate who is qualified to perform wind mitigation inspections, be sure to confirm licenses and check references before hiring an inspector.

Those who do not qualify for one or more wind mitigation credits should consider the cost of hardening their homes and the anticipated savings. Since the amount of wind mitigation credit typically depends on various factors, including state laws and specific insurance company requirements, the assistance of a qualified insurance agent may be needed to estimate premium savings. If the math does not justify retrofitting, homeowners should keep wind mitigation credits in mind the next time general repairs are being done, such as roof and window repair or replacement.

If you would like to learn more about wind mitigation credits or windstorm insurance, contact us.

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