For many of us we end another Hurricane Season with a sign of relief that our local area has missed another year of mother nature’s assault. Many of us are still sensitive from the pain we felt and the destruction we witnessed with our neighbors in Panama City being hit by Hurricane Michael in 2018. A few long-term locals even remember leaving everything behind during the evacuation and anxiously awaiting to see if their house survived Hurricane Andrew in 1992. With these storms being monitored and hyped more than ever it almost feels commonplace to watch an entire region be devastated without a blink of an eye or pull of a heart string. We move on to another year crossing our fingers that next year it won’t be us.
But with Hurricane Ian projecting to be the costliest hurricane to hit Florida in modern history, can we pause for a moment actually correct our course so that we don’t make some of the avoidable mistakes? The hurricane couldn’t be avoided but the insurance coverage carried could have been bolstered considerably.
Lesson #1- Upgraded Building Codes paid off preventing extensive Wind Damage
As you can see in the picture, how you build a home really does matter. All around the home built in 2020 are the remnants of the much older building code. Not only did the elevation pay off with storm surge but the roof looks intact as well.
Florida learned back in 1992 with Hurricane Andrew the price for building average homes. Committed to building more resilient homes, the Florida Building Code evolved to include stronger roof-to-wall connections, better shutters and windows, and providing insurance discounts for additional water mitigation techniques. It’s good to see how these small upgrades make such an impactful difference.
Lesson #2 More than 80% of Flood Damage was Uninsured
According to Core Logic between $8 to $18 billion of the estimated total losses (between $41 and $70 billion) are from flooding and storm surges that are not covered a normal Home Insurance Policy. Of these Flood Losses between $10 and $17 Billion were uninsured. Yes, that’s almost the exact same amount as the total losses. This means almost no one had flood insurance. Home Insurance usually covers wind damage and damage caused by water entering a home only if the structure was broken in some way by the storm/wind. “In the counties whose residents were told to evacuate, just 18.5 percent of homes have coverage through the National Flood Insurance This 18.5% is an average of something much scarier. Areas that were labeled as Flood Plains have compulsory Flood Insurance while those outside this area had a meager 9.5% Flood Insurance rate.
The Federal Government granted some funds to help cover some of the gap in coverage, but these funds are usually minimal and awarded to minorities and the very worst hit areas. After all the Insurance Claims and Federal Funds are dispersed 1 in 5 homes will still be struggling to rebuild.
Lesson #3 The love for Florida runs deeper than our pockets
The rest of the country cannot understand why we continue to live here when we casually expect to live through a natural disaster or few. Honestly, I would prefer for them to think we’re crazy or maybe they and everyone else in the country would join us on the beach, in shorts, in November. We are all painfully aware of the cost that it takes to live by the most beautiful beaches in the world. We pay higher home insurance premiums than the rest of the country, we track hurricanes when they’re still wee baby tropical storms, and if it weren’t for the absence of income tax, we might have reason to move. But only “Floridians” can see the magic of the beaches and nature around us. And only “Floridians” can see the majesty of the sea when a hurricane is coming. And maybe “Floridians” are the only ones who know that the clearest sunsets and sunrises happen after the worst storms.
Moving Forward After A Hurricane
As another Hurricane season winds down, let’s regroup and prepare financially for the next year.
As local insurance agents we love our community and don’t ever want it to be on the news because the residents were underinsured. Please don’t think we’re pushy or preachy when we recommend at least getting a quote for flood insurance. It’s our job to make sure you’re protected, and the only way your home can be while living this close to the ocean, is with Flood Insurance. Talk to your agent today or start a free quote online. There’s no harm in at least seeing what your rate would be.
Flavelle, C. (2022, September 29). Hurricane Ian’s toll is severe. lack of insurance will make it worse. The New York Times. https://www.nytimes.com/2022/09/29/climate/hurricane-ian-flood-insurance.html
Shain, S. (2021, September 13). What to do when there’s a flash flood warning. The New York Times. https://www.nytimes.com/article/flash-flood-safety-survival.html
Flavelle, C., & Edmund. (2022, July 23). How the government is failing Americans uprooted by calamity. The New York Times. https://www.nytimes.com/2022/07/23/climate/climate-disaster-relief-fema.html
This blog is intended for purpose of educating the public on insurance matters and broadening the view of the impact that insurance may have on your life. Views shared in this blog are purely the opinions of the writer and do not express the views of all the staff at Norton Insurance. Any mention of rates, discounts, or eligibility is left up to the Insurance Company and does not mean the reader may qualify or be eligible.