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
   mitigation.
​

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:

• Coastal states have increased potential for damage caused by tropical storms from

June-November.

• A standard, set dollar amount deductible for perils such as fire and theft on your homeowners policy does NOT apply to your hurricane policy. 
• The deductible for hurricane insurance is a percentage amount based on the insured value of the home. For example: If the insured value is $100k and the hurricane insurance requires a 5% deductible, the out of pocket cost would equal $5k. Deductibles may be dictated per state.
• The deductible for hurricane insurance is a percentage amount based on the insured value of the home. For example: If the insured value is $100k and the hurricane insurance requires a 5% deductible, the out of pocket cost would equal $5k. Deductibles may be dictated per state.

Discuss the insured value of your home with your insurance agent on a yearly basis so you clearly understand your personal financial risk for hurricane insurance.
 
The following is an explanation of insurance terms that may be unfamiliar to you from the Insurance Information Institute:

• Beach Plan, FAIR (Fair Access to Insurance Requirements) Plan; and other involuntary or residual markets: insurers of last resort, state-run pools that provide insurance to people who are unable to obtain insurance in the voluntary market. Beach Plans operate in specific coastal territories, defined by zip codes, counties or geography; FAIR Plans are generally statewide.
• Deductible: amount of loss paid by the policyholder before insurance kicks in.
• Dollar deductibles: a flat dollar amount.
• Mandatory deductibles: may be set by insurance rules, regulations or state law, or by an insurer.
• Market Assistance Plan (MAP): a voluntary clearinghouse and referral system designed to put people looking for insurance in touch with insurance companies that have agreed to take on more business.
• Optional deductibles: mostly used in less vulnerable areas. Policyholders may opt for these higher deductibles in order to pay a lower premium.
• Percentage deductibles: calculated as a specified percentage, for example 2 percent, of the insured value of the property.
• Standard deductibles: an indication of the usual homeowners insurance deductibles in the state or area.
• Trigger: an event that is needed for a hurricane deductible to be applied. Hurricane deductibles are “triggered” only when there is a hurricane, or a tropical storm. Triggers vary by state and insurer and may apply when the National Weather Service (NWS) "names" a tropical storm, declares a hurricane watch or warning or defines the hurricane's intensity. Triggers generally include a timing factor, i.e., damage occurring within 24 hours before the storm is named or a hurricane makes landfall up to as long as 72 hours after the hurricane is downgraded to a lesser storm or a hurricane watch cancelled.

 
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. 

​RELATED LINKS: ​www.messtx.com
​© 2016 MESSTX.com

History has proven that storms do happen; adequate preparation is vital and can be the difference between life and death. The number of named storms per hurricane season can be record breaking. Although there is no correlation between the number of predicted storms and the actual number that make landfall, preparations should be made before every storm.  

​

DO:

*  Do contact your insurance agent every year to analyze your hurricane policy, the insured value of your property, and the percentage amount of your deductible.
*  Do plan an evacuation route.
*  Do as asked when told to evacuate by authorities. 
*   Do make a 72-hour emergency kit for all members of the family. Include food, water, personal ID, insurance papers, prescriptions, and any other necessities.  
*  Do cover all windows with strong protectants such as storm shutters, plywood, or storm fabric. 
*  Do trim trees that are close to your property.
*  Do turn the refrigerator down to the coldest temperature.
*  Do take ‘before and after’ pictures of your property following the storm, inside and out. 
*  Do make storm preparations, even if you are inland.

DON’T:

*  Don’t wait until there is a named storm to contact your insurance agent.
*  Don’t wait until everyone is leaving town to evacuate.
​*  Don’t wait to leave until the storm is so severe that it is unsafe to drive. 
*  Don’t forget pet identification and supplies.
*  Don’t make an X out of tape on the windows and think you are protected; this keeps the glass from shattering into small pieces but does not prevent it from breaking.  
*  Don’t keep loose yard items that could blow through windows in open areas.  
*  Don’t open the refrigerator door unless absolutely necessary.
*  Don’t venture into the storm to take pictures.
*  Don’t think you are safe from a storm because you do not live on the coast.

The United States has not felt the impact of a major hurricane in over 10 years and we must not become complacent. Begin now to prepare for hurricane season and follow a plan to keep your home, business, and loved ones as safe as possible. ​

Our certified team of Public Adjusters at Morgan Elite Specialist Services are experienced and ready to assist with your insurance claim needs. Call today at 281-201-1110 or visit messtx.com.

RELATED LINKS: ​www.messtx.com
​© 2016 MESSTX.com

Preparing for Hurricane Season
 Part 2
 
Large amounts of time and money are spent every year analyzing storms and weather events that peril life and property. Our certified team of Public Adjusters at messtx.com would like to share some interesting facts and information from The Insurance Information Institute at http://www.iii.org/issue-update/catastrophes-insurance-issues.
 
Total catastrophe losses over the 20-year period, 1993 to 2012 :  
                        Hurricanes and tropical storms - 40.4%
                        Tornado losses                                      - 36.0%
                        Winter storms                                       -   7.0%
                        Terrorism                                                  -   6.3%
                        Earthquakes and other
                           geologic events                                  -   4.7%
                        Wind/hail/flood                                   -   3.8%
                        Fire                                                               -   1.7%
                        Civil disorders, water damage,
                           utility services disruption          - >1.0%
                          

• Each year about 6 percent of homeowners file claims.
• By the end of the 2015 hurricane season, 11 tropical storms developed in the Atlantic Basin, including four hurricanes:
• Tropical Storm Bill made landfall on the southern coast of Louisiana on June 30 and resulted in four deaths, wind- and storm-surge damage, power outages and a tornado.  
• Tropical Storm Erica formed on August 24 and was responsible for at least 20 deaths on the island of Dominica.
• Joaquin became a hurricane on September 30 and reached Category 4 in strength. Joaquin battered the Bahamas and Bermuda with strong winds, storm-surge flooding and torrential rainfall. Joaquin also combined with other weather systems on the southeastern coast of the United States producing record rainfall for Charleston, South Carolina, and other parts of the state. 
• The eastern Pacific Ocean was active again in 2015 as 18 named storms formed, with 13 becoming hurricanes.  
• Hurricane Patricia, the strongest storm on record in the Western Hemisphere, hit the west coast of Mexico on October 23, 2015 as a Category 5 storm with 165 mph winds.
• Disaster losses along the coast are likely to escalate in the coming years, in part because of huge increases in development. One catastrophe modeling company predicts that catastrophe losses will double every decade or so due to growing residential and commercial density and more expensive buildings. 

Storm categories are regulated by wind speed.
The Saffir-Himpson Hurricane Wind Scale is used to determine the category of the storm along with the associated warnings:
 
Category 1 - Wind speeds from 74-95 mph.  Will produce some damage.  
Example: Hurricane Dolly 2008, South Padre Island, Texas.
 
Category 2 - Wind speeds from 96 - 110 mph.  Will cause extensive damage.
Example: Hurricane Frances, 2004, Port S. Lucie, Florida.
 
Category 3 - Wind speeds from 111-129 mph. Devastating damage will occur.
Example: Hurricane Ivan, 20014, Gulf Shores, Alabama.
 
Category 4 - Wind speeds from 130 - 156 mph.  Catastrophic damage will
                       occur.
Example: Hurricane Charley, 2004, Punta Gorda, Florida.
 
Category 5 - Wind speeds over 157 mph.  Catastrophic damage will occur.
Example: Hurricane Andrew, 1992, Cutler Ridge, Florida
 
Source: U.S. Department of Commerce, National Oceanic and Atmospheric      
              Administration, National Hurricane Center.
 
Even the best predictions cannot outplay Mother Nature. Double-check your insurance policy for adequate coverage and take precautions to protect life and property. Always remove yourself from the path of destruction; your safety is worth more than anything you own! Our team of certified Public Adjusters stand ready to assist when disaster strikes. Contact us at 281-201-1110 or visit messtx.com. 

RELATED LINKS: ​www.messtx.com
​© 2016 MESSTX.com