Hurricanes are often referred to as ‘havoc wreaking monsters’. They can sustain wind speeds in excess of 157 miles per hour and spawn tornados, hail storms, and devastating floods. In 1992, for example, Hurricane Andrew hit the United States three separate times with storm categories of 5, 4, and 3 and a wind speed of 165 mph. This storm caused the largest amount of damage in history, to date, with losses equaling twenty-six billion dollars and a death toll of sixty five.
Following the devastation of Hurricane Andrew, it became necessary for the insurance industry to re-evaluate the insurance processes pertaining to hurricanes. According to the Insurance Information Institute, the following changes were made:
* More carefully managed coastal exposure.
* Larger role of government in insuring coastal risks.
* Introduction of hurricane deductibles.
* Greater use of reinsurance capital from around the world.
* The birth and rapid evolution of sophisticated catastrophe modeling.
* Strong support for strengthened building codes and the importance of
enforcement of these codes, as well as enhanced understanding of the necessity of
Currently, an additional insurance policy is required for hurricane coverage in high risk coastal states. In many areas, hurricane insurance is in force once the National Weather Service has named a storm.
Here are some basic facts:
The following is an explanation of insurance terms that may be unfamiliar to you from the Insurance Information Institute:
Questions? Call Morgan Elite Specialist Services at 281-201-1110 or visit messtx.com. Our team of certified Public Adjusters are experts on property loss adjustment who can assist policyholders in preparing, filing, and adjusting insurance claims.
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The team of Public Adjusters at Morgan Elite Specialist Services have over 25 years of experience in the insurance industry. All of our adjusters are licensed and bonded by the Department of Insurance and are required to take continuing education courses annually.