Archive for the ‘hurricane insurance’ Category

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NOAA Says Hurricane Season Will Be MORE Active than Predicted

August 9th, 2011 by Iris | Comments Off | Filed in flood insurance, hurricane insurance, wind insurance

It may seem weird to be talking about hurricanes when so much of the American south and southwest are suffering under drought conditions and horrible heat, but the Atlantic coast is still at risk, especially since the busiest part of the annual Atlantic hurricane season is the period from August to October.

As they do every August, federal storm watchers updated their outlook for the 2011 Atlantic hurricane season last week, increasing the number of expected “named” storms from the initial predictions made back in May.

NOAA (National Oceanic and Atmospheric Administration) forecasters are now saying they expect three to five of this year’s storm’s to develop into hurricanes of category 3 or higher, with winds topping 110 miles an hour.

Gerry Bell, Ph.D., the lead seasonal hurricane forecaster at the Climate Prediction Center elaborated, saying, “The atmosphere and Atlantic Ocean are primed for high hurricane activity during August through October. Storms through October will form more frequently and become more intense than we’ve seen so far this season.”

The climate factors predicted in May to support an active season include exceptionally warm temperatures in the Atlantic Ocean (actually the third warmest temperatures on record), the possible return of La Niña, and the “tropical tropical multi-decadal signal, which since 1995 has brought favorable ocean and atmospheric conditions, leading to more active seasons.” Also at play is a reduced vertical wind shear and lower air pressure across the tropical Atlantic.

Based on all of this information, the confidence for a more-active-than-normal hurricane season has been revised upwards from May’s 65% to a worrisome 85% this month. As well, the number of predicted named storms has increased from 12-18 in May to 14-19 as of last week, with the expected number of hurricanes now at 7-10, up from 6-10.

What does all this mean to the average coastal homeowner? Don’t be lulled into false security by a season that has been quiet so far; check on your wind and flood insurance coverage before it’s too late.

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Coastal Residents: Check Your Homeowners Insurance Now

June 6th, 2011 by Iris | Comments Off | Filed in auto insurance, flood insurance, homeowners insurance, hurricane insurance

The Atlantic Hurricane Season officially began last Wednesday, and NOAA (The National Oceanic and Atmospheric Administration) is predicting a busy summer tropical storm-wise.

It should come as no surprise, then, that insurance regulators in coastal states like Virginia are strongly suggesting that homeowners – especially those with coastal property – spend some time this week reviewing their homeowners insurance policies.

Representatives from Virginia’s State Corporation Commission want to remind policyholders that some insurers include a deductible for hurricane or wind losses in their policies, but with other insurance companies such coverage is optional. The deductibles also can be written in two ways: either to be applied as a percentage of the coverage on the dwelling, or as a flat amount.

As well, insurance regulators want people to be reminded that since a lot of the damage from a hurricane is actually caused by flooding, separate flood insurance, which can be obtained through the National Flood Insurance Program, may be required.

Automobile insurance, the Virginia commission says, should also be reviewed to see whether wind or hurricane damage is covered.

As well, Virginians – and all coastal homeowners – should make copies of their vital records such as passports, driver’s licenses, social security cards, and birth certificates, and place them, and copies of their insurance policies, in safe, waterproof locations. A foil-wrapped package, inside a zip-top bag, in the freezer, is generally safe.

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FEMA Stresses Need for Hurricane Response Training

April 27th, 2011 by Iris | Comments Off | Filed in hurricane insurance, insurance news

Earlier this week, Craig Fugate, director of FEMA (the Federal Emergency Management Agency) emphasized the importance of public officials learning how to respond to hurricanes and other powerful storms, and also said that the state of the economy was not an excuse to forgo preparation.

Speaking at the National Hurricane Conference in Atlanta, Fugate said, “As much as we talk about the public, this team is constantly changing. There has been a tremendous turnover. How many of the elected leadership are going to participate — and not just for the photo op?”

He stressed that mayors, governors and others have to participate in hurricane preparedness drills in order to really understand the sorts of decisions they may have to make during this summer’s Atlantic hurricane season, which begins in a bit over a month. He also urged the emergency management community to use social media to keep the public engaged in the process, and stressed that they need to work with private sector responders when handling disasters.

When asked if budget concerns would affect state and local governments’ response to disasters like hurricanes, or the recent spate of tornadoes in the Midwest and South, Fugate was dismissive, saying, “Just because the economy’s horrible doesn’t mean hurricanes stop.”

Also speaking at the conference was National Hurricane Center Director Bill Read, who reviewed last year’s hurricane season, which, he said, had the highest number of the storms without a landfall in the United States.

Among his priorities this year, said Read, are outreach to boost community preparation and public empowerment. His top concern is Haiti, where 1.5 million people are still living in tents, putting them at an even greater risk than ever from a major hurricane.

Read said, “That’s going to be my biggest gut check. I don’t know how many people can be safely dealt with in a hurricane of that magnitude.”

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2011 Hurricane Season is Coming

April 18th, 2011 by Iris | Comments Off | Filed in flood insurance, hurricane insurance, wind insurance

It may seem as though winter hasn’t fully left us, and yet, we’re a mere six weeks away from the beginning of the 2011 Atlantic Hurricane Season. So, what are the weather gurus predicting for this year?

According to forecasters at Colorado State University, we’ll see an above-average Atlantic hurricane season. They’re predicting nine hurricanes, five of which are likely to be major, and a 70% chance that there will be at least one which hits the American coastline.

This forecast is actually a slight reduction from the one CSU issued last December, which predicted 16 named storms of which nine would turn into hurricanes, five of which would reach Category 3 or higher on the Saffir/Simpson rating scale.

Last year, there were 19 named storms making it the third most active season (tied with 1897 and 1995) in recorded history. Of those, there were 12 actual hurricanes (making it the second highest season, along with 1969), five of which were major.

The environmental factors determine this year’s prediction, which includes a 72% chance that at least one major hurricane will make landfall in the U.S., include warm surface temperatures in the tropical Atlantic and neutral temperatures in the Pacific. The reduced prediction comes from cooling in the Atlantic and warming in the Pacific.

It’s important to remember that there is no homeowners insurance product specifically for hurricane protection. Instead, a combination of hazard insurance, wind insurance and flood coverage is required. If you live in or near a coastal area, consider checking your coverage now.

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North Carolina Beach Plan to Reclaim $16 Million Distribution

January 31st, 2011 by Iris | Comments Off | Filed in hurricane insurance, insurance news, wind insurance

Wayne Goodwin, the North Carolina Insurance Commissioner recently announced a settlement agreement that will require the North Carolina Insurance Underwriting Association, also known as the “Beach Plan,” to reverse the payments of more than $16 million it made to its member companies in 2009.

The Beach Plan is North Carolina’s “insurer of last resort” for coastal policyholders who cannot find coverage elsewhere. Most of them purchase coverage for damage from hail and windstorms. Under the previous operating guidelines for the Beach Plan any surplus premiums have been allowed to be returned to the member companies. However, in 2009, the North Carolina legislature passed a law stipulating that the Beach Plan’s surplus funds must actually be retained from year-to-year, and be used to cover reinsurance costs, losses, and other expenses. The change in the law was a response to hundreds of thousands of coastal homeowners seeing their insurance premiums increase by an average of up to thirty percent.

Commissioner Goodwin ordered that an examination be conducted by the Insurance Department’s Financial Evaluation Division, which found that in December, 2009 the Beach Plan had distributed about $16.4 million to its member companies, which put it out of compliance with state law, which had taken effect on August 26th of that year. After negotiating with the Beach Plan officials, it was agreed that no wrongdoing would be admitted, but that the funds would be returned.

Goodwin told the press, “I am pleased that we came to an agreement that this money will be returned to the Beach Plan where it can help protect coastal property owners.”

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New Insurance Options for Coastal Alabama & Mississippi

January 18th, 2011 by Iris | Comments Off | Filed in hurricane insurance, wind insurance

Just a week after USAA dropped wind coverage from 1,550 insurance policies on homes in the three southernmost counties of Mississippi, a handful of new insurers have entered the coastal markets in that state and in Alabama.

American Strategic, Coastal American, PURE, Republic, Southern Fidelity, and Wilshire are now offering coverage in both states, and while their addition to the market may not provide enough competition to make insurance rates go down, but at least several thousand homeowners will have more options to choose from at a time when options for wind coverage have been dwindling.

In Alabama, more than 50,000 home- and business owners along the coast will be losing – or have lost – their wind insurance coverage since 2004′s Hurricane Ivan. Alfa Mutual Group, Allstate Corp., and Farmers Insurance Group are among those making significant cuts in their exposure in the Gulf Coast region.

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Lawsuit May Halt Work on Louisiana Levees

January 17th, 2011 by Iris | Comments Off | Filed in homeowners insurance, hurricane insurance, insurance facts

The Insurance Journal reported late last week that there is a lawsuit in process which may halt work to reinforce one of the New Orleans canals that broke during Hurricane Katrina in 2005.

On January 5th, homeowners with backyards along the 17th Street Canal filed a civil suit in state court requesting that work be halted because they claim they have not been compensated for the land where the work will take place – land, they claim, which they own.

The Army Corps of Engineers has plans to being work soon to strengthen the floodwall and levee along the 17th Street Canal, which contributed to the massive flooding of New Orleans on August 29, 2005.

In the suit, seven families are claiming that work crews would be trespassing. Their suit is based on a dispute about whether or not the backyards along the canal are private land, or part of the state’s right-of-way. The suit was filed against the Southeaster Louisiana Flood Protection Authority-East, and the Orleans Levee District.

The precedent here is unclear. In 2008 homeowners sued for the loss of trees, fences and outbuildings close to the canal levee that were removed to make the floodwalls and levee safer, and a state district judge ruled in their favor, but in 2009, the state 4th Circuit Court of Appeal overturned their compensation claims. The new suit brings up similar issues, but seeks to stop work until they are resolved.

The corps plans to improve the canal’s strength by pouring cement deep into the ground to build a subsurfance wall, and to build a new embankment wall along the canal.

Randy Smith, a lawyer for the homeowners explains, “One of our founding principles is no taking of private property without just compensation. No one is against hurricane protection. Our point is, you can take land, but the way you take land is you pay for it.”

Meanwhile, Thomas Anzelmo, Sr., who represents the levee agencies, said that the appellate court was “pretty clear” when it ruled that the state has a right of way along waterways like the 17th street canal. He said the state was merely granting a “right of entry” to the Army Corps, which would be doing the actual work.

Nancy Allen, a spokesperson for the corps said that the new lawsuit is not expected to delay work along the canal. She said that the work is scheduled to be completed by the June deadline set for upgrading New Orleans’ levees. June 1 marks the beginning of hurricane season.

A hearing before Civil District Judge Kern Reese has been set for Jan. 14.

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