May 5-11 marks National Hurricane Preparedness Week and the Insurance Information Institute (III) is emphasizing the need for property owners to heed warnings for a “very active” Atlantic hurricane season.

“Everyone who lives in a hurricane-prone community should take a few moments to ensure they have adequate financial protection for their property and possessions, while also taking steps to make their home or business more resilient to the impacts of wind and water,” said III CEO Sean Kevelighan, in a statement.

He added, “History has proven states along the Gulf and East coasts face the prospect of catastrophic, hurricane-caused property damage. With more Americans living in harm’s way than ever before, it is critical for everyone residing in a hurricane-prone community to make preparedness a priority for the upcoming season.”

The Colorado State University’s (CSU) Tropical Meteorological Project has projected 23 named storms including 11 hurricanes (five of them major) for the upcoming season, which begins on June 1. The predictions include the highest number of hurricanes since the team began its annual forecast in 1995.

“Coastal residents are reminded that it only takes one hurricane making landfall to make it an active season for them. Thorough preparations should be made for every season, regardless of how much activity is predicted,” said the CSU team in this year’s forecast.

III highlighted the importance of examining insurance coverage for both homes and businesses closely – always a valuable exercise for property owners and their agents, but especially significant now. High insurance prices have prompted many insureds to drop certain covers, increase their deductibles, or to switch insurers.

However, home replacement costs have risen more than 55% since 2019 due to the higher costs of construction materials and labor, noted Kevelighan, meaning clients should be having conversations with their insurance agents around appropriate coverage to rebuild, repair, and replace homes and contents, as well as temporary living expenses for unusable or uninhabitable properties.

In addition to verifying insurance coverage, anything insureds can do ahead of a natural disaster to mitigate or prevent losses can help keep insurance available and affordable for the long-term, according to the American Property Casualty Insurance Association of America (APCIA). It is “critically important” to stay aware of the threat in hurricane-prone states.

“An active and costly hurricane season could exacerbate the challenges that many policyholders across the U.S., but particularly in disaster-prone regions like the hurricane coastline, face with rising insurance costs and availability challenges,” said Michael Richmond-Crum, director of personal lines at APCIA.

Flood Information

Hurricanes can bring severe flooding along with strong winds, but a recent survey revealed just 14% of U.S. consumers surveyed carried a separate flood policy. The Independent Insurance Agents & Brokers of America (IIABA) chalk this up to ongoing misconceptions around homeowners policies, which do not cover flooding.

IIABA also said in recent commentary many consumers also believe they would never be affected by flooding since their properties aren’t near bodies of water. Anywhere it rains can experience flooding.

“As extreme weather continues to be an issue across the globe, flooding is more commonly occurring outside of traditionally high-risk areas,” said IIABA. “The National Association of Insurance Commissioners reports that approximately 25% of flood claims covered by insurance policies occur outside FEMA-designated hazard zones.”

Ahead of hurricane season, insureds should make sure they have adequate insurance protection. Speak with RISE Insurance to learn more about suitable coverage for your home, vehicle, personal possessions, business and other risk exposures.

Call our office today at 423.541.1111 to learn more about Risk management solutions.