I’m 3,000 Miles Away – That Hurricane Can’t Hit Me

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The Atlantic hurricane season, which is predicted to be fierce, kicked off June 1. If your business is located in the West, you are far more concerned about good earthquake coverage and may think that the next big hurricane is one thing you don’t have to worry about. You may be wrong.

Property owners in hurricane prone areas, which have increased because storm surges have reached further inland than previous catastrophe models considered in their loss scenarios, are experiencing increased rates, significantly higher deductibles and less insurers willing to underwrite risk. As insurers spread this risk among policyholders, other sections of the country will feel some type of rate increase. Additionally, since hurricane claims are paid from the same pool that includes earthquakes, California will have a higher earthquake coverage rates.

Warmer-than-average water temperatures are set to bring more Atlantic hurricanes than usual before the end of this year. The National Oceanic and Atmospheric Administration Climate Prediction Center (NOAA) predicts 13 to 20 named storms, seven to 11 hurricanes and three to six major hurricanes.

So while you read the news headlines, counting your blessings that you were not anywhere near the damage, be in touch with your insurance broker to be informed about what you may need to be planning for. Oh, and then there are the tornadoes…

 

 

 

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