Archive for the ‘wind insurance’ Category

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.

Tags: , ,

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.

Tags: , , ,

President Obama Signs Washington Disaster Dec

March 31st, 2011 by Iris | Comments Off | Filed in flood insurance, wind insurance, world events

Yesterday afternoon, President Obama signed the federal disaster declaration ordering federal aid as a supplement to state and local recovery efforts Washington state.

The declaration applies to seven counties that were hit by severe winter weather in January of this year, that included flooding, mudslides and landslides. The counties affected are King, Kittitas, Klickitat, Lewis, Skagit, Skamania, and Wahkiakum.

Federal money is available to state and local governments for emergency work and to help repair or replace storm-damage facilities, on a cost-sharing basis.

Tags: , ,

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.”

Tags: , , ,

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.

Tags: ,

Alabama Wind Pool Changes Policy on Buildings In/On Water

October 25th, 2010 by Iris | Comments Off | Filed in insurance news, wind insurance

The Alabama Insurance Underwriting Association, that states last-resort insurer for such policies, announced on Friday that it would no longer be issuing policies for buildings built over or in water.

According to association manager Bob Groves, while they provide coverage for wind damage, they are concerned about water undermining the structure of buildings.

Current policy holders will be able to retain their coverage – even on buildings in or over the water – as long as they maintain ownership and keep their premiums current, but if the buildings are sold, the association will not cover the new owners, and if water encroaches upon a building that is currently on land, coverage will be dropped.

It is estimated that less than 400 of the 18,500 polices the association has issued will be affected by this change.

Tags: , ,

Connecticut Asks President Obama to Reconsider Tornado Damage Aid

September 23rd, 2010 by Iris | Comments Off | Filed in homeowners insurance, wind insurance

Connecticut doesn’t get hit by tornadoes very often, so it shouldn’t come as any surprise that most of the state’s residents don’t have wind insurance in their homeowners coverage. After all, even in places where tornadoes happen every year, protection against severe wind storms generally comes in the form of a policy rider.

It should also be no surprise, then, that when an EF-1 tornado struck Bridgeport, CT in June, not only was the property damage significant (think $3 million in Bridgeport itself, plus more in surrounding towns), Connecticut’s congressional delegation requested federal aid for tornado-related damage.

The request was denied, which is why the delegation has now asked President Obama to intercede, and reconsider the denial of aid for Fairfield County. To this end, they wrote to the President on Tuesday, pointing out that FEMAs rejection of the aid will mean property owners won’t have the money to rebuild their homes and lives.

According to Senators Chris Dodd and Joe Lieberman, and Representatives Joe Courtney, Rosa DeLaura, Jim Himes, John Larson, and Chris Murphy, most of the people affected are low-income, and fewer than 20 percent of those affected had the necessary insurance coverage.

Connecticut Governor M. Jodi Rell has also appealed the FEMA ruling.

Tags: , ,