Posts Tagged ‘hurricane insurance’

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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GeoVera Brings Windstorm-Hurricane Insurance to Hawaii

March 15th, 2011 by Iris | Comments Off | Filed in flood insurance, homeowners insurance

Hawaiian property owners may be pleased to know that GeoVera Insurance has expanded into the state, bringing with it a residential windstorm-hurricane insurance product. These policies will insure residential real estate against wind during a hurricane. GeoVera will be partnering with local independent agents to offer the product.

The windstorm-hurricane coverage will apply to the actual dwelling, other structures, contents and loss of use (or fair rental value) and can be purchased for homes with values up to $1 million. Available deductibles will range from 2 to 5 percent, and homes that are fitted with wind-resistive devices may receive a credit.

Like flood insurance, this is a “single peril” product – it only applies to wind damage in hurricane situations.

GeoVera does most of its business in “catastrophe exposed” regions, and, as of last June, had an A- (excellent) rating from A.M. Best Co.

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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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Friday Filmstrips: Hurricane Insurance

October 8th, 2010 by Iris | Comments Off | Filed in friday filmstrips, hurricane insurance, insurance specialists

The 2010 Atlantic hurricane season is mostly over, but experts at the National Hurricane Center say that Florida and the Caribbean are not yet out of the woods. For this week’s Friday Filmstrip, then, we’re offering this video about hurricane insurance and flooding.

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Alabama Buys Hurricane Insurance

August 9th, 2010 by Iris | Comments Off | Filed in insurance news

I didn’t know an entire state could purchase hurricane insurance, but according to the Insurance Journal, the state of Alabama has done just that.

Under a deal that took effect last month, Alabama will pay $800,000/year for three years to global insurer Swiss Re, as a hedge against heavy hurricane damage to state-owned coastal property. In the event of a Category 3 or 4 hurricane with winds between 110 and 155 mph, Swiss Re will pay the state $5 million. If a Category 5 hurricane (with winds in excess of 156 mph) hits the Alabama coast, the payout would be $10 million.

Officials from the State Finance Department told the press that the money would be used toward all or part of the deductible that the state pays on it’s traditional coverage of state property, which includes parks, schools, and government buildings. According to Finance Department attorney Richard Cater, Alabama has a $10 million deductible for each named storm.

Swiss Re said that Alabama is the first U.S. state to purchase this sort of coverage, known as “parametric insurance,” but that similar policies have been issued to governments in Mexico and the Caribbean.

Nikhil da Victoria Lobo, a vice president of Swiss Re, told the press, “Swiss Re has provided these solutions across the globe to multiple governments, but has just recently begun this dialogue in the U.S. The state of Alabama initiated discussions with Swiss Re.”

Bill Newton, Alabama’s State Finance Director, said that Swiss Re was not the only insurer offering proposals when his state began looking for this type of coverage, but that their policy was based on an analysis of previous storm damage from hurricanes hitting the Alabama coast.

Swiss Re is the company that former Alabama Insurance Commissioner Walter Bell joined in 2008 when he left his state post to become chairman of the holding company for Swiss Re’s North American business. But da Victoria Lobo and Cater both said Bell was not involved in negotiating the contract.

Swiss Re representatives said that the policy allows the state to get paid quickly and avoid unpredictable expenses.

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