National Hurricane Survival Initiative

Saving Lives & Minimizing Damage -- Is your community prepared?

Cost Shouldn’t Influence Evacuation Decision

by

Authored by: Alok Jha, CEO of Assured Risk Cover

To leave or to stay? That’s the penetrating question families often face as a hurricane roars ever closer. The decision is based on a number of variables, including:

  • “Is an evacuation order in place?”
  • “Will we be safe in the house?”
  • “Is there enough food and water to last a week to 10 days?”
  • “Is there backup power?”
  • “If we evacuate do we have money to pay for gas, food and lodging?”

Human behavior is a funny thing, because even after carefully considering all of these variables, one’s decision often hinges not on hard data, but on one’s gut. Going with the rest of the crowd is often the default. (“What are Pete and Marge going to do?”) Peer pressure is a powerful force in a crisis (though not as powerful as 110 mph winds).

The New York Times recently reported on the experiences of individuals who evacuated during Hurricane Michael, and a common theme was the cost of evacuation.[1]

Sierra Cardenas of Panama City Beach said hers was a life or death decision. “I have a 2-year-old daughter and I could not take a chance with our lives.” Cardenas expected to be away from home for a prolonged period, and at the time she was interviewed her gas, food and motel bills were already nearing $500, which she put on a credit card.

Kelly Gerig of Panama City had spent nearly $800. Vanessa Feigel had spent $500 for food, lodging and gas – which was coming out of the family’s savings. Even though the military paid Jody Walton’s evacuation expenses, she wasn’t sure how she could afford her Homeowner’s deductible.

Most Homeowners policies don’t cover evacuation expenses so residents have to dig deep into their pockets or put everything on a credit card. In a survey conducted this summer by National Hurricane Survival Initiative and FAIR Foundation, nearly one-fourth (23%) said at one time or another in their life they’ve stayed put during a hurricane because of the cost of evacuation.

One-fifth of the survey respondents said they paid between $300 and $500 to evacuate from Hurricane Irma, while 40% spent $500 or more.

The first few days (and weeks) after a hurricane can be paralyzing. While it’s difficult to be prepared physically and emotionally to face what may come, it’s now easier than ever to be prepared financially for those first 24 to 72 hours. A new type of insurance called StormPeace pays immediately after a hurricane and the funds can be used for expenses not covered by a Homeowners policy as well as the deductible.

In fact, some Florida residents who can’t afford Homeowners insurance have relied on StormPeace and its low premiums to get back of their feet; $1.25 a day can buy up to $10,000 worth of coverage. StormPeace is parametric insurance, which means the payout is based on preset parameters: the strength of the hurricane and its distance from the insured’s address. There’s no claims process and unlike traditional insurance all claims from Michael have been settled, most of them within 24 hours.

Reacting to the Times article one reader wrote, “This is a sobering reminder of how many people in this country are just a few hundred dollars away from real financial hardship.”

Parametric insurance like StormPeace is a product that’s long overdue. It helps people get back on their feet faster without having to exhaust their savings or max out a credit card. So the next time evacuation orders are posted the decision to stay or go will be easy.

 

[1] https://www.nytimes.com/2018/10/13/reader-center/evacuation-hurricane-michael.html

Gwen Graham Joins REBUILD 850 Leadership to Boost Panhandle Recovery

by

TALLAHASSEE, Fla. — Former U.S. Rep. Gwen Graham, whose Congressional district included many of the Northwest Florida counties and towns most devastated by Hurricane Michael, has joined the leadership team of the REBUILD 850 initiative. Graham will serve as co-chair of the effort, along with former Florida House Speakers Allan Bense and Will Weatherford.

“The people of North Florida have always been proudly self-reliant, but in the unprecedented aftermath of Hurricane Michael, they need all of Florida to pull together on their behalf,” Graham said. “REBUILD 850 will play an important role in rebuilding our communities and helping the families hit hardest by the storm, which is why I am proud to join this vital initiative and to serve with Speakers Bense and Weatherford.”

Bense said Graham’s deep history in the region and leadership skills will add valuable perspective as the affected communities work to recover and rebuild.

“Gwen’s caring leadership and deep connections to the region are why we asked her to co-chair REBUILD 850,” Bense said. “It doesn’t matter what part of Florida you call home – we’re all in this together, and all Floridians must pull together to help our neighbors in need.”

Added Weatherford: “Hurricane Michael didn’t care about the political affiliation of the people whose lives it impacted, and recovery must also rise above any divisions. There is nothing more important than helping our communities get back on their feet.”

REBUILD 850 unites the resources and efforts of Volunteer Florida, the Florida Department of Economic Opportunity, the Florida Chamber of Commerce, the Florida Chamber Foundation, the Florida League of Cities, the Florida Association of Counties, United Way of Florida, the American Red Cross, the Florida Press Association, the Florida Association of District School Superintendents, the FAIR Foundation, “Get Ready, Florida!”, the Florida School Boards Association, the Florida Society of Association Executives, United Way of the Big Bend, and the Greater Tallahassee Chamber of Commerce.

REBUILD 850’s objectives urge people to donate, volunteer, visit and invest in the affected region. The mission is to help residents of areas devastated by the power of Michael while promoting commerce in communities – ranging from Panama City Beach to Pensacola – that escaped the worst of the storm’s wrath and remain open for business.

Donations to REBUILD 850 will be administered by Volunteer Florida’s Florida Disaster Fund. The Florida Disaster Fund is the state’s private fund established to assist communities following disasters. The funds are distributed to approved organizations that are serving affected individuals throughout both disaster response and long-term recovery. During response, these organizations and volunteers are assisting with tree removal and debris cleanup, tarp installation, mucking out and gutting of homes, and food distribution. Long-term recovery includes rebuilding homes, businesses, and communities while offering financial guidance and planning services.

Individuals can donate or volunteer to help REBUILD 850 by going to www.rebuild850.org

Don’t Go Into Another Hurricane Season Without This Important Business Tool

by

Speed of recovery means everything for businesses. You don’t want to wait days or weeks after a hurricane to reopen, because that’s lost income. What’s more, many businesses see a surge in demand after a hurricane, so they absolutely have to stay open or at least minimize downtime.

That’s why Assured Risk Cover created StormPeace for businesses. It’s designed to give business owners the cash infusion they need immediately after a hurricane so they can get back on their feet quickly.

Business interruption coverage is becoming increasingly popular, yet it has its limitations. Most commercial insurance policies require proof of physical damage before they will pay for business interruption. StormPeace, however, offers business interruption coverage with or without physical damage, because often all it takes is a power outage or evacuation order to force a business to close its doors.

Florida businesses are preparing for this hurricane with StormPeace – because the faster they recover, the sooner their customers and the local economy benefit. They can apply the funds toward a wide variety of expenses, including:

  • Temporary location rental
  • Transportation
  • Debris cleanup
  • New equipment
  • Business income loss or payroll expenses
  • Repairs

Like the StormPeace residential policy, applying for business coverage is simple. Just provide your business name and address and choose a policy limit, up to $60,000 and lower than your hurricane deductible, if you have one. There’s a simple, painless claims process and you’ll receive your payment within hours of the hurricane. The amount you receive is calculated based on the strength of the storm and its distance from your business location. It doesn’t matter how the loss was caused (e.g. by wind, flying debris, water, rain, storm surge, or mold from water), so long as the triggers are met.

According to FEMA, 40% of small businesses never reopen after a disaster, and another 25% that do reopen fail within a year. A small business can be extremely vulnerable to a major weather event, and it represents years of sweat equity and investment. The stakes are too high to leave anything to chance.

Get started at www.stormpeace.com today!

Parametric Insurance Puts Money in Your Pocket

by

What’s the one thing you can’t live without? It probably took you .07 of a second to answer, “My phone, of course!”

Our phones are indispensable. Without our phone, we can’t look anything up, listen to music, communicate with others, or purchase anything. It’s our lifeline and your constant companion.

So why are we still asked to abandon the “smart” part of our smartphones and use the same old dialing method when transacting with insurance companies? Admittedly, some are getting better at putting the customer experience on the smartphone. There are some great examples, like Lemonade, Metromile, and GEICO.

But – and here’s the big but! – there’s still too much friction when you try to file a claim after disaster occurs. You have to look up a phone number, call the number, sit on hold, speak to three different people, provide your policyholder number (and who knows where to find that number anyway?) and wait another 15 minutes until you’re given some kind of assurance that you’re being taken seriously and someone will look into your claim.

Or maybe you go to your insurer’s website and open up one of those dreaded chat windows. You can bet the uncertainty and delays only get worse when hundreds of other people are trying to get answers online after a major disaster.

As J.D. Power notes, “most insurers’ digital offerings are lacking in insurance-specific capabilities such as processing claims, effective shopping and servicing of policies.”

It shouldn’t be this difficult for the consumer.

Fortunately, two breakthroughs have converged to ease the pain of the interminable claims process:

  1. Parametric insurance has shortened the time to payment.
  2. Mobile technology has made it immediate.

You can now have a claims payment hitting your bank account within hours, with no hassle or human interaction.

The problem has been around forever: Too many things happen during a disaster that aren’t covered by a typical homeowners policy. With the exception of the dwelling and contents, few things damaged or destroyed are covered. Historically that put consumers in a bind, until advanced data science and computing came along and made it possible to insure all these additional risks. In fact, if it doesn’t appear in your homeowners policy, a supplemental hurricane policy will cover it.

Here’s an example of how parametric and mobile are teaming up to help people recover faster. Let’s say you live in Florida and a hurricane passes through your town, toppling a huge tree in your driveway. Now you’re stranded because your car is stuck in the garage. To make matters worse, you lost power, your food is spoiling, and you can’t get out to restock until the tree has been removed.

Few of us would have the cash sitting around to take care of these urgent matters quickly. If you’ve been through a hurricane, tornado, or similar disaster, you know the first 24 to 48 hours can be paralyzing. Your world is turned upside down.

However, if you had purchased a StormPeace policy, you can get the money you need almost instantly. There’s a painless claims process because the computer instantly calculates how much dough you’re eligible to collect. The amount is based on the strength of the storm and its distance from where you live.

So, you’re sitting on your front step lamenting your situation when all of a sudden you get an email saying you’re eligible for a claims payment. All you have to do is click “accept” attesting to the loss claims amount, and the money is wired to your bank. It’s like “found money” because you even forgot you purchased that parametric policy! And it’s a good thing your insurer notified you electronically, because your phone is about the only thing you own that’s working at the moment.

Applying for a StormPeace policy couldn’t be simpler:

  • Submit your name and address
  • Select a limit
  • Click buy

Parametric insurance has been around for a while, used by many businesses. But StormPeace is one of the first companies to deliver this valuable tool to homeowners and other consumers. It provides the peace of mind that they’ll have money in their pocket to handle those surprise expenses that pop up, like needing to buy a generator, repair a pool cage or boat dock, or replant landscaping. They can also use the funds to meet their homeowners’ deductible, which can run into the thousands. Without meeting that deductible, repair work on your house will be delayed even longer.

Thanks to StormPeace, all you need is your smartphone to buy an insurance policy and get paid after the storm! You can still call us, too. Visit www.stormpeace.com to get started.

Six Tips for Preparing to Protect Your Family and Home This Hurricane Season

by

When it comes to protecting what matters most, FedNat Insurance Company wants to use its 30+ years of safeguarding experience to remind homeowners how they can best be prepared for the unpredictability of hurricane season in Florida.

1. Review your insurance policy

Discuss your policy with your insurance agent to make sure you understand what is covered and how much your deductible is. Flood insurance is a separate policy and typically has a 30-day waiting period, so don’t wait for a storm to develop before you seek to obtain coverage.

2. Create a disaster supply kit

The kit should include items such as flashlights, batteries, cash, first aid supplies, sunscreen, bug repellent, trash bags, medicine, chargers, water and non-perishable food.

3. Develop emergency plans

Map evacuation routes and set up family communication plans. Remember that phone service might not be available, so think of other ways of communicating such as email, social media or texting. Include pets in your plans. Store insurance information and other important documents (such as passports) in an easily accessible location and on the cloud.

4. Conduct a home inventory

Create a paper or digital inventory of your home’s contents. Include photos or videos of your home and belongings along with receipts, descriptions and estimated values.

5. Prepare your home

Keep tree limbs trimmed away from your roof, so large branches don’t fall and damage your home. Be prepared to fortify your doors, windows, roof and other vulnerable points with protective devices and have extra parts for hurricane shutters and other storm-proofing tools on hand. Remove any debris or items from your yard that could become projectiles in a storm.

6. Stay connected

Consider downloading weather-monitoring apps and subscribing to your local community’s wireless emergency alerts. Listen to local officials for updates and instructions.

Download PDF