It’s Hurricane Season, Follow These Guidelines

Courtesy of iii.org

Hurricanes are violent and dangerous to your family and your home. When a hurricane threatens to bear down, make sure that you know how to batten down your hatches and protect yourself, your loved ones and your property.


When it’s hurricane season

Hurricane season starts June 1 and runs through November 30. But don’t wait until a warning—take steps to prepare in advance for a potential hurricane—it’s the best way to protect your family, your home and your business.

For more preparedness tips, handy checklists (including ones you can personalize yourself) and evacuation planning advice to cover a variety of disasters, get the I.I.I.’s Know Your Plan app. It’s a great tool to help get you and your family—including pets—organized and ready to act more quickly if a hurricane or other emergency strikes.

When a hurricane watch is issued

A hurricane watch is issued when there is a threat of a hurricane within a 24-36 hour period. At that time, you should:

  • Purchase any emergency supplies that you don’t already have on hand. Hit the stores early, as items such as batteries, candles and flashlights will get snapped up quickly.
  • Prepare your yard by removing all outdoor furniture, lawn items, planters and other materials that could be picked up by high winds. If you haven’t already, remove weak branches on plants and trees. Lower antennas and retractable awnings.
  • Fully charge your cellphone.
  • Fill your car’s gasoline tank.
  • Jot down the name and phone number of your insurer and insurance professional and keep this information handy in your wallet or purse.

When a warning is issued

A hurricane warning is issued when hurricane conditions are expected in 24 hours or less, which means a storm is imminent.

  • Stay informed of the storm’s progress by listening to the radio or TV. Even better, listen to a NOAA Weather Radio for critical information from the National Weather Service (NWS).
  • Install hurricane shutters, board up or otherwise securely shutter large windows and draw drapes across windows and doors.
  • Get off the boat—never remain on a boat during a hurricane! Check mooring lines of boats in water.

If evacuation becomes necessary

Hopefully, you’re fully prepared with an evacuation plan. Also remember:

  • Don’t wait until the last minute—shelters might be full or the roads might be jammed. If you have pets, consider traveling before an evacuation is ordered—otherwise, you might be ordered by officials to leave your pet home.
  • Take along survival supplies from your list.
  • Keep important papers with you at all times, including your home inventory and make sure you have the name and phone number of your insurance professional.
  • Take warm, protective clothing for the whole family in case you get stuck.
  • Lock all windows and doors on your home. Don’t compound hurricane damage with the threat of possible looters.
  • Keep all receipts for anything that might be considered to be an additional living expense (ALE) in the event your home is destroyed or damaged and rendered uninhabitable.

If you remain at home during a hurricane

Stay indoors. Don’t go out even during the brief calm when the eye of the storm passes over as wind speeds can increase dramatically in seconds.

  • Stay away from windows and glass doors and move furniture away from exposed doors and windows.
  • Stay on the downwind side of house. If your home has an “inside” room, stay there during the height of the hurricane.
  • Keep the television or radio tuned into information from official sources.

After the hurricane, beware of the dangers that remain

The storm may have passed, but it likely has created new dangers.

  • Beware of outdoor hazards like loose or fallen tree limbs, loose signage or awnings that are in danger of breaking off and falling.
  • Keep away from loose or dangling power lines, and report them immediately to the proper authority.
  • Walk or drive extra cautiously as washouts may weaken road and bridge structures.
  • In the event of a power outage, throw out food that may be spoiled.
  • Boil municipal water before drinking until you have been told it is safe.

If your home is damaged

Notify your insurance professional as soon as possible of any losses. If you had to relocate, let your representative know where you can be contacted. In addition:

  • Make temporary repairs—if they can be made safely—to protect property from further damage or looting; for insurance purposes, keep all receipts for materials used.
  • Get written estimates for any proposed repair jobs and use only reputable contractors. Be especially careful of building contractors who want huge deposits up front or encourage you to spend a lot of money on temporary repairs. Ask for their references and check with the Better Business Bureau on complaints.
  • Gather any other receipts for expenses that will be covered by insurance or will be tax deductible.

You and Hurricane Insurance

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  • Florida accounted for 13 percent of all U.S. insured catastrophe losses from 1987 to 2016: $70.8 billion out of $364.3 billion, based on data from the PCS division of ISO. (Adjusted for inflation by ISO using the GDP implicit price deflator.)
  • Six of the 10 costliest hurricanes in U.S. history have impacted Florida. Four of these storms occurred within just two years: 2004 and 2005. (See chart.)
  • The costliest hurricane, based on insured property losses to Florida, was 1992’s Hurricane Andrew. It caused $25.4 billion in damage to Florida and Louisiana (in 2018 dollars). (See chart.)
  • Standard homeowners policies typically do not cover flood damage. Flood insurance is covered by the federally managed National Flood Insurance Program, but private flood insurance is becoming increasingly available.
  • Florida leads the nation in the number of flood policies, according to the National Flood Insurance Program, with about 1.8 million policies in force in 2017.
  • The number of people living in coastal areas in Florida increased by 4.2 million, or 27 percent, from 15.6 million in 2000 to 19.8 million in 2015, according to the U.S. Census Bureau. About 98 percent of the total population of Florida lives in one of the coastal counties.
  • In Florida, 2.8 million homes were at risk in 2018 for storm surge damage from hurricanes up to Category 5 strength, according to CoreLogic, Inc. These homes would cost $552.4 trillion to completely rebuild, including labor and materials.
  • Given the growth in the number and value of insured property, a repeat of the hurricane that devastated Miami in 1926 would have resulted in approximately $130.2 billion in insured damage in 2016, according to Karen Clark and Co.
  • After its establishment in 2002, when the state passed legislation combining two separate high-risk insurance pools known as the Florida Windstorm Underwriting Association and the Florida Residential Property & Casualty Joint Underwriting Association, Citizens Property Insurance Corp. (CPIC) experienced exponential growth. As a result, Florida Citizens has evolved from a market of last resort to the state’s largest property insurer.
  • Florida Citizens Property Insurance Corp. provides multiperil and wind-only insurance coverage to Florida homeowners, commercial residential and commercial business property owners.
  • Direct homeowners insurance premiums in Florida written by Citizens was $460.9 million in 2017 down from $795 million in 2014.
  • Citizens was the state’s fourth leading homeowners insurer in 2017, with a market share of 5.0 percent, down from 9.1 percent in 2014.
  • Florida Citizens had 482,765 policies with an exposure of $112.3 billion in fiscal year 2017, according to the Property Insurance Plans Service (PIPSO).

 

2018-How Bad Was the Hurricane Damage?

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The 2018 Atlantic hurricane season was less active than the 2017 season but still caused extensive property damage across the southeastern United States, according to the Insurance Information Institute (I.I.I.).

The 2018 hurricane season officially concludes tomorrow (Nov. 30) and saw the formation of 15 named storms. Eight of the 15 became hurricanes, and two (Florence and Michael) became major hurricanes, according to Philip Klotzbach, Ph.D., a research scientist with the Department of Atmospheric Science at Colorado State University (CSU). Klotzbach is also a non-resident scholar with the I.I.I.

The original CSU forecast for 2018, presented in April, predicted slightly above-average hurricane activity with three major hurricanes. The seasonal outlooks CSU subsequently released in the summer envisioned less hurricane activity, with CSU forecasting 12 named storms, five hurricanes, and one major hurricane on Aug. 2.

“Even in what ended up as an average year for major hurricane activity, 2018 was record-setting, with Hurricane Florence spurring statewide rainfall records in North and South Carolina. In addition, Hurricane Michael was the first time on record a Category 4 hurricane made landfall in the Florida Panhandle,” said Sean Kevelighan, I.I.I. CEO. “As financial first responders, the insurance industry continues to be on the ground, helping to rebuild our customers’ livelihoods and economies more broadly. Nonetheless, these extraordinary hurricanes highlighted for coastal residents and businesses the importance of disaster preparedness, building resilient structures and insuring properties against both flood and wind-caused damage.”

A named storm is considered a hurricane when its sustained wind speeds are at least 74 miles per hour. Major hurricanes are those that are designated as a Category 3 storm or higher, with sustained wind speeds of at least 111 mph.

Florence made landfall as a Category 1 storm on Sept. 14 near Wilmington, North Carolina. It was categorized as a major hurricane in the Atlantic Ocean, but the storm’s wind speeds diminished significantly before striking the U.S. coastline. The weather system lingered for days in the Carolinas, dumping as much as 36 inches of rain in North Carolina and 24 inches in South Carolina, the most ever recorded there after a hurricane.

Michael made landfall on Oct. 10 near Mexico Beach, Florida. More than 85,000 of the 125,000-plus claims Florida’s insurers received as of Nov. 16 as a result of Hurricane Michael were for insured residential properties, and the total estimated insured claim payouts currently are estimated at $3.4 billion.

An average Atlantic hurricane season produces 12 named storms and six hurricanes, including three major hurricanes. The 2017 hurricane season had 17 named storms. Ten of the 17 reached hurricane strength and six became major hurricanes, according to the National Oceanic and Atmospheric Administration (NOAA).

What Are Hurricane Deductables for Florida

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After Hurricane Andrew in 1992, insurers realized that losses from hurricanes could be much higher than they had previously thought. Hurricane Katrina, in 2005, which cost insurers more than $41 billion at the time, confirmed their fears. After these extraordinary losses, reinsurance companies, insurers that share the cost of claims with primary companies, such as homeowners insurers, said that they could not assume so much risk and that primary companies must reduce their potential losses.

During the Atlantic hurricane season, which lasts from June to November, every coastal state from Florida to Maine could potentially be hit by a storm. Increasing development along the coastal areas of these states has put more and more homes at risk of severe windstorm damage. To limit their exposure to catastrophic losses from natural disasters, insurers in these states sell homeowners insurance policies with percentage deductibles for storm damage instead of the traditional dollar deductibles, which are used for other types of losses such as fire damage and theft. With a policy that has a $500 standard deductible, for example, the policyholder must pay the first $500 of the claim out of pocket. But percentage deductibles are based on the home’s insured value. So if a house is insured for $300,000 and has a 5 percent deductible, the first $15,000 of a claim must be paid out of the policyholder’s pocket. The details of hurricane deductibles are spelled out on the declarations page of homeowners policies.

To some degree, depending on the state, insurance companies determine the level of the hurricane or windstorm or wind/hail deductible and where it should apply, except in Florida where state law dictates these variables. Insurers’ hurricane deductible plans must be reviewed by the individual state insurance department where they may be subject to various regulations and laws.

Nineteen states and the District of Columbia have hurricane deductibles: Alabama, Connecticut, Delaware, Florida, Georgia, Hawaii, Louisiana, Maine, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Texas, Virginia and Washington DC. Listed below are reports for these states detailing hurricane deductibles.

Explanation of Terms:

  • 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.

How Hurricane Deductibles Work

There are two kinds of wind damage deductibles: hurricane deductibles, which apply to damage solely from hurricanes, and windstorm or wind/hail deductibles, which apply to any kind of wind damage. Percentage deductibles typically vary from 1 percent of a home’s insured value to 5 percent. In some coastal areas with high wind risk, hurricane deductibles may be higher. The amount that the homeowner will pay depends on the home’s insured value and the “trigger” selected by the insurance company, which determines under what circumstances the deductible applies. In some states, policyholders may have the option of paying a higher premium in return for a traditional dollar deductible, depending on how close to the shore they live. In some high-risk coastal areas, insurers may not give policyholders this option, making the percentage deductible mandatory. (See Infographic: Hurricane Deductibles.)

Florida Hurricane Deductibles

By Florida statute, the application of hurricane deductibles is triggered by windstorm losses resulting only from a hurricane declared by National Weather Service. Hurricane deductibles apply for damage that occurs from the time a hurricane watch or warning is issued for any part of Florida, up to 72 hours after such a watch or warning ends and anytime hurricane conditions exist throughout the state.

Hurricane deductibles and their triggers are set by law and are the same for the private, or regular market, as well as Florida?s Citizens Property Insurance Corporation (CPIC), the state-run program which provides property insurance to consumers. The hurricane deductible applies only once during a hurricane season. All insurers must offer a hurricane deductible of $500, 2 percent, 5 percent and 10 percent of the policy dwelling or structure limits. The percentages are based on the total value of the home. By Florida law, property insurance rate filings must include mitigation discounts or credits. These are applied to property insurance premiums. These discounts are available for personal and commercial residential property only. See Florida Office of Insurance Regulation for details.

The CPIC (Citizens), Florida’s state-run insurer of last resort will insure new homeowners in high-risk areas and others who cannot find coverage in the open private market. Under Florida law, Citizens may write a new insurance policy only if no comparable private market coverage is available or comparable private market policy premiums are more than 15 percent higher than a comparable Citizens policy See website for details.

The Florida Market Assistance Program is a free referral service designed to match consumers who cannot find property insurance with Florida-licensed agents and insurers who are writing new business. See website for details.

Information Sources:

 

Hurricanes What to Do

Courtesy of iii.org

Hurricanes are violent and dangerous to your family and your home. When a hurricane threatens to bear down, make sure that you know how to batten down your hatches and protect yourself, your loved ones and your property.


When it’s hurricane season

Hurricane season starts June 1 and runs through November 30. But don’t wait until a warning?take steps to prepare in advance for a potential hurricane?it’s the best way to protect your family, your home and your business.

For more preparedness tips, handy checklists (including ones you can personalize yourself) and evacuation planning advice to cover a variety of disasters, get the I.I.I.?s Know Your Plan app. It’s a great tool to help get you and your family?including pets?organized and ready to act more quickly if a hurricane or other emergency strikes.

When a hurricane watch is issued

A hurricane watch is issued when there is a threat of a hurricane within a 24-36 hour period. At that time, you should:

  • Purchase any emergency supplies that you don’t already have on hand. Hit the stores early, as items such as batteries, candles and flashlights will get snapped up quickly.
  • Prepare your yard by removing all outdoor furniture, lawn items, planters and other materials that could be picked up by high winds. If you haven’t already, remove weak branches on plants and trees. Lower antennas and retractable awnings.
  • Fully charge your cellphone.
  • Fill your car’s gasoline tank.
  • Jot down the name and phone number of your insurer and insurance professional and keep this information handy in your wallet or purse.

When a warning is issued

A hurricane warning is issued when hurricane conditions are expected in 24 hours or less, which means a storm is imminent.

  • Stay informed of the storm’s progress by listening to the radio or TV. Even better, listen to a NOAA Weather Radio for critical information from the National Weather Service (NWS).
  • Install hurricane shutters, board up or otherwise securely shutter large windows and draw drapes across windows and doors.
  • Get off the boat?never remain on a boat during a hurricane! Check mooring lines of boats in water.

If evacuation becomes necessary

Hopefully, you’re fully prepared with an evacuation plan. Also remember:

  • Don’t wait until the last minute?shelters might be full or the roads might be jammed. If you have pets, consider traveling before an evacuation is ordered?otherwise, you might be ordered by officials to leave your pet home.
  • Take along survival supplies from your list.
  • Keep important papers with you at all times, including your home inventory and make sure you have the name and phone number of your insurance professional.
  • Take warm, protective clothing for the whole family in case you get stuck.
  • Lock all windows and doors on your home. Don’t compound hurricane damage with the threat of possible looters.
  • Keep all receipts for anything that might be considered to be an additional living expense (ALE) in the event your home is destroyed or damaged and rendered uninhabitable.

If you remain at home during a hurricane

Stay indoors. Don’t go out even during the brief calm when the eye of the storm passes over as wind speeds can increase dramatically in seconds.

  • Stay away from windows and glass doors and move furniture away from exposed doors and windows.
  • Stay on the downwind side of house. If your home has an “inside” room, stay there during the height of the hurricane.
  • Keep the television or radio tuned into information from official sources.

After the hurricane, beware of the dangers that remain

The storm may have passed, but it likely has created new dangers.

  • Beware of outdoor hazards like loose or fallen tree limbs, loose signage or awnings that are in danger of breaking off and falling.
  • Keep away from loose or dangling power lines, and report them immediately to the proper authority.
  • Walk or drive extra cautiously as washouts may weaken road and bridge structures.
  • In the event of a power outage, throw out food that may be spoiled.
  • Boil municipal water before drinking until you have been told it is safe.

If your home is damaged

Notify your insurance professional as soon as possible of any losses. If you had to relocate, let your representative know where you can be contacted. In addition:

  • Make temporary repairs?if they can be made safely?to protect property from further damage or looting; for insurance purposes, keep all receipts for materials used.
  • Get written estimates for any proposed repair jobs and use only reputable contractors. Be especially careful of building contractors who want huge deposits up front or encourage you to spend a lot of money on temporary repairs. Ask for their references and check with the Better Business Bureau on complaints.
  • Gather any other receipts for expenses that will be covered by insurance or will be tax deductible.

Additional resources

Red Cross Hurricane Safety Checklist

Next steps: If you’ve been hit by hurricane that’s a declared national disaster, learn about FEMA assistance.

Business Preparations for Hurricane Season

Courtesy of iii.org

No business is totally immune from disaster. Every year, businesses temporarily shut down?or close forever?because of a disaster such as a flood, fire or hurricane. Forty percent of businesses do not reopen after a disaster and another 25 percent fail within one year, according to the Federal Emergency Management Agency (FEMA).

Fortunately, you can take proactive steps to mitigate the impact of a disaster on your business. In addition, carrying adequate insurance coverage can help your business get back on its feet quickly.

Disaster preparation

Households?especially in areas prone to hurricanes, tornadoes and earthquakes?often prepare for disasters by storing extra supplies, having an evacuation plan, and learning about emergency resources. Businesses similarly want to prepare, with a focus on restoring your operations as soon as possible and minimizing your losses. To prepare adequately for a disaster, take the following steps:

  • Develop a formal written plan?Sometimes called a “Disaster Recovery Plan” or “Business Continuity Plan,” this document should detail how your business will respond to and recover from a disaster, including temporarily relocating your business. The National Fire Protection Association (NFPA) has developed a National Preparedness Standard for developing a plan. Some businesses also develop specific plans to protect and recover their information technology (IT) infrastructure. In today’s era of cloud computing, it is increasingly easier to back up data offsite.
  • Train employees?Share your Disaster Recovery Plan with employees, assign responsibilities, and offer training so that your workforce can help your business recover. You may also want to conduct drills to assess and improve response.
  • Store emergency supplies?Keep flashlights, a first-aid kit and a battery-powered radio on hand at your business. Depending on its location, you may even want to store food, water and blankets. As feasible and needed, consider stocking equipment that can help your business return to operations, such as a generator.
  • Maintain key information offsite?To get your business up and operating again after a disaster, you’ll need to be able to access critical business information. In addition to backing up computer data, keep an offsite list of your insurance policies, banking information and the phone numbers of employees, key customers, vendors and suppliers, your insurance professional and others. You’ll also want to maintain an inventory of your business equipment, supplies and merchandise; you may want to photograph items as well.

Disaster response and recovery

After a disaster, you’ll want to put your Disaster Recovery Plan into action. Read the Insurance Information Institute’s “Best Practices for Filing a Business Insurance Claim,” which details several steps to control damage and recover costs. In the immediate aftermath of a disaster, take the following actions as appropriate:

  • Secure your building, boarding up entry points if necessary.
  • Make temporary repairs, especially to minimize further damage, such as placing a tarp over a hole in your roof.
  • Relocate salvageable equipment and property to a safe, protected location.
  • Inspect your property and keep a detailed list of damages; take photos to document damage.
  • Clean up your property, taking care to wear safety gear such as gloves and protective eyewear. If feasible, save damaged property in case it needs to be inspected by your insurance adjuster.
  • Contact your insurance professional and your insurer to begin the claims process.
  • Keep receipts of all expenses related to the disaster.

Once you’ve secured your property and taken other immediate steps, you can begin to focus on making your business operational once again. You should lay the groundwork for restarting operations in your Disaster Recovery Plan. Issues to consider include:

  • Location?Should you open a new temporary location or can you operate from your home or use the facilities of a partner or even friendly competitor?
  • Communications?How will you communicate with your employees, customers, vendors and suppliers?
  • Insurance claims?In addition to filing a property claim, you’ll want to file a business interruption insurance claim, if you carry this type of coverage. This insurance will help you cover costs of relocating as well as lost income.

Outlook for 2018 Atlantic Hurricanes

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Colorado State University (CSU) released its updated outlook for the 2018 Atlantic hurricane season today, and they are now calling for a below-normal season with a total of 11 named storms (including Alberto which formed in May), four hurricanes and one major hurricane (maximum sustained winds of 111 miles per hour or greater; Category 3-5 on the Saffir-Simpson Wind Scale) (Figure 1). This prediction is a considerable reduction from their June outlook which called for 14 named storms, six hurricanes and two major hurricanes. Accumulated Cyclone Energy (ACE) and Net Tropical Cyclone (NTC) activity are integrated metrics that take into account the frequency, intensity and duration of storms.

Figure 1: July 2, 2018 outlook for the forthcoming Atlantic hurricane season.

CSU employs a statistical model as one of its primary outlook tools. The statistical model uses historical oceanic and atmospheric data to find predictors that worked well at forecasting prior year’s hurricane activity and has shown considerable skill based on data back to 1982 ). The statistical forecast for 2018 is calling for a below-average season.

CSU also uses an analog approach, whereby the team looks for past years with conditions that were most similar to what they see currently, and what they predict for the peak of the Atlantic hurricane season (August-October). The forecast team currently anticipates below-average to near-average sea surface temperatures (SSTs) in the tropical Atlantic and warm neutral to weak El Niño conditions in the eastern and central Pacific. This averaging of the five analog seasons also calls for a below-average season .

The primary reason for the reduction in the seasonal forecast was due to continued anomalous cooling of the tropical Atlantic. Most of the Atlantic right now is much cooler than normal. (Figure 4). In fact, current sea surface temperature anomalies in the tropical Atlantic are colder than any year since 1994. In addition to providing less fuel for storms, a cooler tropical Atlantic is also associated with a more stable and drier atmosphere as well as higher pressure. All of these conditions tend to suppress Atlantic hurricane activity.

CSU also believes that the chance has increased for a weak El Niño event developing to coincide with the peak of Atlantic hurricane season. El Niños tend to reduce Atlantic hurricane activity through increases in upper-level winds that tear apart hurricanes as they are trying to develop. The dynamical and statistical model guidance is about evenly split between El Niño and neutral (neither El Niño nor La Niña) conditions for the peak of the Atlantic hurricane season (August-October)

Coastal residents are reminded that it takes only one storm to make any hurricane season an “active” one. For example, CSU correctly predicted a quiet Atlantic hurricane season in 1992. The season, in fact, was very quiet, with only seven named storms, four hurricanes and one major hurricane—but that major hurricane happened to be Hurricane Andrew, which tore across south Florida as a Category 5.

Tornado Tips

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Warnings/watches

Remember that a watch means that weather conditions are favorable for tornadoes and a warning means one has been spotted in your area.

  • Learn the warning signals used in your community. If a siren sounds, that means stay inside and take cover.
  • Consider setting up a neighborhood information program through a club, church group or community group. Hold briefings on safety procedures as tornado season approaches. Set up a system to make sure senior citizens and shut-ins are alerted if there is a tornado warning.

Seeking shelter

Do not try to outrun a tornado. Instead, stay calm and seek shelter.

  • At home or work, seek shelter in the central part of the building, away from windows. Basements are the best havens. If this is not an option, take cover in the bathroom, closet, interior hallway or under a heavy piece of furniture.
  • If you are in your car, abandon your vehicle and seek shelter in the nearest ditch if no other facility is available.
  • People living in mobile homes should vacate the premises and seek shelter elsewhere.

Protecting your property

  • If a tornado watch has been issued, move cars inside a garage or carport to avoid damage from hail that often accompanies tornadoes. Keep your car keys and house keys with you.
  • If time permits, move lawn furniture and yard equipment such as lawnmowers inside. Otherwise they could become damaged or act as dangerous projectiles causing serious injury or damage.
  • Make an inventory of your possessions and store it off the premises. If your belongings are damaged, this list will help facilitate the claim filing process.

Hurricane Deductible Infographic

Courtesy of iii.org

The official Atlantic hurricane season runs from June through November, but occasionally storms form outside those months. September is the most common month for hurricanes making landfall in the U.S., followed by August and October, according to an analysis of 1851 to 2015 data by the National Oceanic and Atmospheric Administration. No hurricanes made U.S. landfall before June and after November during the period studied.

2018 Hurricane Forecast: Dr. Philip Klotzbach and Michael Bell of Colorado State University (CSU) released an updated forecast for the 2018 Atlantic hurricane season at the end of May. The CSU team now envisions a near-average season with 14 named storms, six hurricanes, and two major hurricanes. The May forecast is slightly lower than their original outlook which called for 14 named storms, seven hurricanes, and three major hurricanes. A typical year has 12 named storms, six hurricanes, and three major hurricanes, according to the National Oceanic and Atmospheric Administration (NOAA). Major hurricanes (Category 3 or higher) have sustained wind speeds of at least 111 miles per hour.

What is a Hurricane Deductible?

Insurance Guide 2018 Hurricane Season

Courtesy of iii.org

Hurricane season takes place June 1 – November 30 every year. Don’t wait until after you have a loss to check your insurance—review your homeowners or renters policies to make you have the right coverage in the event you’re hit with a destructive storm.


Make sure your home’s structure has adequate coverage

Standard homeowners insurance covers the structure of your house for disasters such as hurricanes and windstorms, along with a host of other disasters. It’s important to understand the elements that might affect your insurance payout after a hurricane, and adjust your policies accordingly.

  • Understand your hurricane/windstorm deductible – Insurers in every coastal state from Maine to Texas include separate deductibles for hurricanes and/or windstorms in their homeowners policies, stated on the Declarations (front) page of your homeowners policy.

A hurricane deductible is applied only to hurricanes, whereas a windstorm deductible applies to any type of wind. If your policy has a hurricane deductible, it will clearly state the specific “trigger” that would cause the deductible to go into effect.

Unlike the standard “dollar deductible” on a homeowners policy, a hurricane or windstorm deductible is usually expressed as a percentage, generally from 1 to 5 percent of the insured value of the structure of your home.

If you live in an area at high risk for hurricanes, your hurricane deductible may be a higher percentage. Depending on your insurer and the state where you live, you may have the option of paying more money in premiums in exchange for a lower deductible.

Like any deductible, a hurricane or windstorm deductible will affect the bottom line of your insurance payout. If you have a high hurricane or windstorm deductible consider putting aside the additional money you may need to rebuild your home.

One common exclusion is flooding. People tend to underestimate this risk, but 90 percent of all natural disasters—especially hurricanes—include some form of flooding. If you live in a flood zone or a hurricane-prone area, a separate flood insurance policy is a must.

Another common exclusion is sewer backups (which is also not covered by flood insurance) Sewer backup insurance is also good to have in hurricane-prone areas.

Get to know all of the exclusions in your policy and either talk to your insurance professional about purchasing separate coverage, or be prepared to pay out of pocket for the damages that are excluded in your policy.

  • If you own a co-op apartment or condo – check with your management company and the bylaws to understand what is covered under the building’s master insurance policy versus what damages you need to cover in your own co-op or condo owners insurance policy.

Make sure your possessions are adequately insured

Imagine the cost of repurchasing all of your furniture, clothing and other personal possessions. Whether you have homeowners insurance or renters insurance, your policy provides protection against loss or damage due to a hurricane.

  • Determine the value of your possessions with a home inventoryCreating a full inventory of your belongings and their value will make it easy to see if you are sufficiently insured for either replacement cost or cash value of the items. It will also help speed the insurance claims process and help provide proof of losses for tax or disaster aid purposes.
  • Review your policy to ensure you’re adequately covered – Homeowners policies provide approximately 50 to 70 percent of the amount of insurance you have on the structure of your home. If you rent, know that your landlord’s insurance will only cover the structure of your home—you need a renters policy to protect your possessions against loss or damage.

Make sure your policy provides enough coverage for additional living expenses

Additional living expenses (ALE) covers the extra costs incurred if you need to live elsewhere because your home is rendered uninhabitable as the result of a hurricane (or any other insured disaster). While your home or apartment is being repaired or rebuilt, ALE covers hotel bills, restaurant meals, etc.—expenses over and above what your customary living expenses would be at home. Generally, the ALE policy limit is 20 percent of the amount of insurance coverage on the structure of your home. Standard renters policies also provide for ALE.

  • Most insurers offer the option of higher coverage limits – Depending on where you live (which may dictate your expenses), you may want to consider a higher ALE.
  • ALE reimbursements may be limited to a specified amount of time – Make sure you’re comfortable with the time limits in your policy.
  • If you rent out part of your home, ALE coverage also reimburses you for lost rental income. Make sure your policy reflects the current amount of your rental income.