Posts Tagged ‘wind 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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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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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.

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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.

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August Busiest Month for Hurricanes

August 11th, 2010 by Iris | Comments Off | Filed in flood insurance, homeowners insurance, insurance news

While the National Oceanic and Atmospheric Administration (NOAA) has slightly amended the hurricane outlook it released in May, an above-normal season is still expected. With ocean temperatures at record highs, and the climate phenomenon known as “La Nina” beginning to development, government forecasters maintain that this may be the busiest Atlantic hurricane season since 2005.

The original forecast predicted 14-23 named tropical storms during this hurricane season. Those numbers have been revised to a range of 14-20. The Atlantic hurricane season began on June 1st, and runs through November 30th, but the peak period is in high summer and early fall: August through October, during which eight to twelve storms could develop into hurricanes, four-to-six of which could evolve into “major storms” with winds in excess of 111 mph.

Jane Lubchenco said in a statement to the press, “August heralds the start of the most active phase of the Atlantic hurricane season and with the meteorological factors in place, now is the time for everyone living in hurricane prone areas to be prepared.”

Historically during active storm seasons, multiple hurricane strikes are much more likely for both the Gulf Coast and the East Coast in the U.S., but the Caribbean also sees a marked increase in the number and severity of storms during active seasons. This could mean bad news for Haiti, where there are roughly 1.6 million people still living under tarps and in tents, seven months after a disastrous earthquake crumbled its capital.

So far this season, three named storms have developed. Hurricane Alex made landfall in northern Mexico on June 30th, and tropical storm Bonnie caused some trouble for oil company crews working in the Gulf of Mexico in July. Last Thursday, tropical storm Colin regenerated, with winds of 45 mph over the open Atlantic, according to the National Hurricane Center in Miami, FL. A tropical storm warning was issued for Bermuda.

According to Gerry Bell, lead seasonal hurricane forecaster at NOAA’s Climate Prediction Center in Washington, the May outlook, which called for eight to 14 hurricanes, with possibly three to seven major hurricanes, reflected a more active early summer than we actually had. Bell also said that the update is based on indications that a high-activity era which began in 1995 is continuing.

“The atmospheric and oceanic conditions now in place are very conducive to hurricane formation, as we had predicted in May,” he said.

A Pacific Ocean phenomenon called La Nina developed in July, reducing wind shear in the Atlantic and making it easier for storms to take shape. As well, ocean temperatures are exceptionally high, and the warmest since 2005 when Hurricanes Katrina and Rita tore apart the very part of the Gulf of Mexico now dealing with BP’s oil spill. According to Bell, during above-normal seasons it’s typical for three named storms to spin into the Gulf between August and November. A storm’s individual strength and its path across the water would determine whether there would be any impact on remaining oil from the explosion last April.

Tropical storms are named when sustained wind speeds reach 39 mph (62 kph). They become hurricanes when sustained winds reach 74 mph (119 kph). Major hurricanes blow at 111 mph (178 kph) or more. The strongest hurricanes are labeled Category 5, with winds greater than 155 mph (250 kph).

Last week, researchers from Colorado State University researchers said they also expected this year’s season to be more active than average, forecasting 10 hurricanes, five of them major.

Hurricane season ends Nov. 30.

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