Hurricane and Windstorm Deductibles
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THE TOPIC
MAY 2009
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, many insurers in these states are selling 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 $100,000 and has a 2 percent deductible, the first $2,000 of a claim must be paid out of the policyholder’s pocket.
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 state insurance department.
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 many states, policyholders have the option of paying a higher premium in return for a traditional dollar deductible. In some high-risk coastal areas, insurers may not give policyholders this option, making the percentage deductible mandatory.
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RECENT DEVELOPMENTS
- North Carolina’s Beach and Fair Plan windstorm deductible changes have been postponed. The deductibles were slated to change from dollar amounts to percentages. The deductibles, currently $500 and $1,000, would have been changed to 5 percent on Bald Head Island, in the southern part of the state, and 2 percent in the rest of the state. The postponement was the result of judicial decision concerning regulatory procedure.
- The Louisiana Department of Insurance issued a regulation that allows insurers to change their named storm deductible on homeowners insurance policies that have been in effect for more than three years to no more than 4 percent of the value of the property insured. The regulation became effective April 20, 2009. The insurer must notify the policyholder of the premium savings associated with the new deductible and cannot apply more than one deductible to a loss resulting from any single incident. (See state section for Louisiana.)
- The Maryland Insurance Administration issued a bulletin in April 2009 clarifying the implementation of discounts for homeowners insurance policyholders who have made improvements to fortify their homes against weather-related damages due to storms. As of June 1, 2009 insurers must offer at least one actuarially justified premium discount to their policyholders who submit proof of improvements. (See state section for Maryland.)
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STATE-BY-STATE HURRICANE DEDUCTIBLES
Eighteen 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, 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 (see below). 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.
- Voluntary market: regular or competitive market, the traditional insurance market.
- WindMap (NJ): a market assistance plan set up at the New Jersey Department of Insurance that is subject to state rules concerning eligibility but operates in the voluntary market instead of being a state-run plan.
ALABAMA HURRICANE DEDUCTIBLES (August 2008)
Hurricane deductibles are percentage or dollar deductibles that are higher than for other perils, or causes of loss. They are calculated as a percentage of the dollar amount of coverage on the dwelling. The trigger for hurricane deductibles, or the point at which they apply, varies by company. Triggers have some common characteristics: they generally go into effect only when the National Weather Service issues a hurricane watch or warning and remain in effect for 24 to 48 hours after the storm has passed. The intensity of hurricanes also affects the trigger. Hurricanes are classified on a scale of 1 to 5 with 5 as the highest intensity. If the policy has mandatory deductibles, this means the insurer will not sell homeowners coverage without a hurricane deductible. When a deductible is optional, policyholders may also choose a lower deductible in exchange for a higher premium (a buyback) or a higher deductible for a premium credit.
Voluntary Market: Optional or mandatory, depending on the insurer.
Hurricane Deductibles: As of 2007 (latest data available), at least three of the top five insurers have mandatory hurricane deductibles. For these insurers, the deductibles are 2 percent to 15 percent. At least one insurer in the top five uses a wind/hail deductible ranging from $1,000 in areas where the vulnerability to hurricane damage is severe, to $250 where it is low. In 2008, the state's largest insurer mandated a 5 percent deductible in Mobile and Baldwin (beachfront) counties.
Trigger: Hurricane warning issued by the National Weather Service, in effect for 24 to 72 hours after the warning is lifted.
Alabama Insurance Underwriting Association (Beach Plan): The Alabama Insurance Underwriting Association (AIUA, http://www.alabamabeachpool.org ) provides two types of policies: fire and extended coverage (not as comprehensive as standard homeowners policies and provides no liability coverage); and a wind and hail only policy for homes, condominiums, mobile homes and commercial businesses located in the Beach, Seacoast and Gulf Front territories of Baldwin and Mobile Counties. See web site for details.
Information Sources:
CONNECTICUT HURRICANE DEDUCTIBLES (AUGUST 2008)
Hurricane deductibles are percentage or dollar deductibles that are higher than for other perils, or causes of loss. They are calculated as a percentage of the dollar amount of coverage on the dwelling. The trigger for hurricane deductibles, or the point at which they apply, varies by company. Triggers have some common characteristics: they generally go into effect only when the National Weather Service issues a hurricane watch or warning and remain in effect for some time after the storm has passed. The intensity of hurricanes also affects the trigger. Hurricanes are classified on a scale of 1 to 5 with 5 as the highest intensity. If the policy has mandatory deductibles, this means the insurer will not sell homeowners coverage without a hurricane deductible. When a deductible is optional, policyholders may also choose a lower deductible in exchange for a higher premium (a buyback) or a higher deductible for a premium credit.
Beginning January 1, 2008, insurers are prohibited from not issuing or renewing a homeowners policy because the homeowner has not installed storm shutters to mitigate hurricane or other storm damage. In addition, insurers must offer a premium discount to homeowners who install storm shutters or impact-resistant glass.
As of July 2008 for new business written on properties over 2,600 feet from the coast, insurers may impose either a hurricane deductible not to exceed 2 percent or reasonable windstorm mitigation requirements for the protection of the dwelling. Guidelines issued in January 2007 stipulate that within 2,600 feet of the coast, insurers may use a hurricane deductible that is actuarially justified and reasonable shutter mitigation requirements.
Also as of July 2008 hurricane deductibles must be specifically identified on the declarations page of a homeowners policy, and the insurer must give the homeowner a premium credit. If the hurricane deductible is a percentage of the covered value of the property the declarations page must describe the calculation of the dollar amount. New policyholders or existing policyholders who did not have hurricane deductibles previously must be informed in writing of the new hurricane deductible.
Also as of July 2008 the Department of Insurance had issued guidelines for shutter mitigation requirements that can be viewed on its Web site at
http://www.ct.gov/cid/lib/cid/HomeownercoastalGuidelines.pdf
Trigger: As of July 2008 the Department of Insurance defines hurricanes as those that are declared by the National Weather Service/ National Hurricane Center as a Category 1 to 5 hurricane. The hurricane deductible can be applied when a hurricane warning is declared by the National Hurricane Center anywhere in the state and ends 24 hours after a hurricane warning is terminated or 24 hours after the hurricane is downgraded for the state.
Voluntary Market: In 2007 (latest data available), a least two of the top five homeowners insurers had mandatory hurricane deductibles in certain coastal areas. One required a wind and hail deductible. Wind and hail deductibles apply to losses from wind from any source.
Hurricane or Wind and Hail Deductible: Mandatory hurricane deductibles were between 1 percent and 5 percent. At least one of the top five insurers used a wind/hail deductible of 2 percent and $100 to $2,000.
Connecticut FAIR Plan: The Connecticut FAIR Plan (http://www.ctfairplan.com/ ) insures homeowners who have not been able to find coverage elsewhere. Provides actual cash value coverage for a very basic “named perils” policy. See web site for details.
CMAP: The Coastal Market Assistance Program (C-MAP) has been created to assist homeowners living in Connecticut coastal areas who have been unable to obtain insurance. C-MAP was created by the insurance companies that write homeowners insurance in Connecticut under the authorization of the Connecticut Insurance Department and is administered by the Connecticut FAIR Plan.
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DELAWARE HURRICANE DEDUCTIBLES
Hurricane deductibles are percentage or dollar deductibles that are higher than for other perils, or causes of loss. They are calculated as a percentage of the dollar amount of coverage on the dwelling. The trigger for hurricane deductibles, or the point at which they apply, varies by company. Triggers have some common characteristics: they generally go into effect only when the National Weather Service issues a hurricane watch or warning and remain in effect for 24 to 48 hours after the storm has passed. The intensity of hurricanes also affects the trigger. Hurricanes are classified on a scale of 1 to 5 with 5 as the highest intensity. If the policy has mandatory deductibles, this means the insurer will not sell homeowners coverage without a hurricane deductible. When a deductible is optional, policyholders may also choose a lower deductible in exchange for a higher premium (a buy back) or a higher deductible for a premium credit.
Homeowners insurers in Delaware must provide their policyholders with information about the deductibles included in their policies. Insurers must provide a description of what the deductible is, a full description of the circumstances that trigger a deductible, examples of how the deductible is calculated and a statement that says that deductibles are not required by state law and vary by insurer.
Voluntary Market: As of 2007 (latest data available), At least two of the top 5 homeowners insurers have a mandatory hurricane or wind and hail deductible in certain jurisdictions, notably in Sussex County (southern shore).
Hurricane or Wind and Hail Deductible: 2 percent. Flat dollar deductibles are available depending on vulnerability to wind ranging from $100 to $250.
Trigger: Hurricane warning or watch issued by the National Weather Service.
Insurance Placement Facility of Delaware: The facility (http://www.defairplan.com ) insures homeowners who have not been able to find coverage elsewhere for windstorm and hail damage. See web site for details.
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DISTRICT OF COLUMBIA HURRICANE DEDUCTIBLES
Hurricane deductibles are percentage or dollar deductibles that are higher than for other perils, or causes of loss. They are calculated as a percentage of the dollar amount of coverage on the dwelling. The trigger for hurricane deductibles, or the point at which they apply, varies by company. Triggers have some common characteristics: they generally go into effect only when the National Weather Service issues a hurricane watch or warning and remain in effect for some time after the storm has passed. The intensity of hurricanes also affects the trigger. Hurricanes are classified on a scale of 1 to 5 with 5 as the highest intensity. If the policy has mandatory deductibles, this means the insurer will not sell homeowners coverage without a hurricane deductible. When a deductible is optional, policyholders may also choose a lower deductible in exchange for a higher premium (a buyback) or a higher deductible for a premium credit.
Voluntary Market: As of 2007 (latest data available), at least one insurer among the top 10 homeowners insurers is using an optional wind/hail deductible. In addition, two other insurers (not in the top 10) are using wind/hail or windstorm deductibles.
Wind/hail or Windstorm Deductibles: Optional deductibles range from 1 percent to 5 percent, and from $1,000 to $5,000.
District of Columbia Property Insurance Facility: The FAIR Plan (http://www.dcpif.org ) insures homeowners who have not been able to find coverage elsewhere. See web site for details.
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FLORIDA HURRICANE DEDUCTIBLES (May 2009)
Hurricane deductibles are percentage or dollar deductibles that are higher than for other causes of loss. They are calculated as a percentage of the dollar amount of coverage on the dwelling or as a flat dollar amount like a standard deductible. 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 would 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. (See http://www.myfloridacfo.com/consumers/literature/HomeGuide2007.pdf )
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, the state-run program which provides homeowners 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 (e.g., a 10 percent hurricane deductible on a $200,000 home would be $20,000). In some cases a deductible of more than 10 percent is permissible. For example, for homes that are insured for less than $500,000, the deductible can be higher than 10 percent if the homeowner states the dollar value of the deductible in a letter to the insurer. The deductible must be stated in the policy as a dollar amount regardless of the percentage.
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The Citizens Property Insurance Corporation (CPIC): The CPIC (https://www.citizensfla.com), Florida's state-run insurer of last resort and its largest homeowners insurer, will insure new homeowners in high risk areas and others who cannot find coverage in the open private market. CPIC offers three types of property and casualty insurance:
- Personal Lines Account, for homeowners, mobile homeowners, tenants and condominium owners;
- Commercial Lines Account, for condominium associations, apartment buildings and homeowners associations, and the
- High-Risk Account, for personal, commercial residential and commercial non-residential customers.
See web site for details.
Florida Market Assistance Program (FMAP, http://www.fmap.org ): The FMAP 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 web site for details.
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GEORGIA HURRICANE DEDUCTIBLES
Hurricane deductibles are percentage or dollar deductibles that are higher than for other perils, or causes of loss. They are calculated as a percentage of the dollar amount of coverage on the dwelling. The trigger for hurricane deductibles, or the point at which they apply, varies by company. Triggers have some common characteristics: they generally go into effect only when the National Weather Service issues a hurricane watch or warning and remain in effect for 24 to 48 hours after the storm has passed. The intensity of hurricanes also affects the trigger. Hurricanes are classified on a scale of 1 to 5 with 5 as the highest intensity. If the policy has mandatory deductibles, this means the insurer will not sell homeowners coverage without a hurricane deductible. When a deductible is optional, policyholders may also choose a lower deductible in exchange for a higher premium (a buyback) or a higher deductible for a premium credit.
Voluntary Market: As of 2007 (latest data available), two of the top 5 homeowners insurers use a hurricane deductible; two use a wind and hail deductible.
Hurricane Deductibles: Mandatory 2 to 10 percent. Wind/hail: one company uses a mandatory 1 percent or 5 percent or $500 on the coast; optional noncoastal deductibles are $500-$2,500. Other wind/hail deductibles range from $100 to $1,000, depending on vulnerability to wind.
Trigger: Hurricane warning or watch issued by the National Weather Service.
Georgia Insurance Underwriting Association (FAIR Plan): The FAIR Plan(http://www.georgiaunderwriting.com ) insures those who have not been able to find coverage elsewhere for windstorm and hail damage only for homes and businesses in certain coastal counties and islands. See web site for details.
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HAWAII HURRICANE DEDUCTIBLES (May 2008)
Hurricane deductibles are percentage or dollar deductibles that are higher than for other perils, or causes of loss. They are calculated as a percentage of the dollar amount of coverage on the dwelling. The trigger for hurricane deductibles, or the point at which they apply, varies by company. Triggers have some common characteristics: they generally go into effect only when the National Weather Service issues a hurricane watch or warning and remain in effect for some time after the storm has passed. The intensity of hurricanes also affects the trigger. Hurricanes are classified on a scale of 1 to 5 with 5 as the highest intensity. If the policy has a mandatory deductible, this means the insurer will not sell homeowners coverage without a hurricane deductible. When a deductible is optional, policyholders may also choose a lower deductible in exchange for a higher premium (a buyback) or a higher deductible for a premium credit.
The Hawaii State Legislature created the Hawaii Hurricane Relief Fund in 1993 to provide windstorm damage from hurricane force winds in the wake of Hurricane Iniki which caused about $2.2 billion in insured losses in 2005 dollars. After the homeowners insurance market stabilized, the fund was shut down and stopped writing coverage at the end of 2000. Currently, one insurance company writes property policies specifically limited to the peril of hurricane damage in Hawaii only. Policyholders then purchase property coverage for other perils and liability coverage from other insurers.
Voluntary Market: One major insurer is writing property policies limited to hurricane damage.
Hurricane or Wind and Hail Deductible: All companies have a mandatory minimum deductible with optional higher deductibles.
Trigger: Hurricane watch or warning by the National Weather Service.
Hawaii Property Insurance Association (FAIR Plan): The insurer of last resort for homeowners insurance. Does not offer hurricane coverage.
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LOUISIANA HURRICANE DEDUCTIBLES (May 2009)
Hurricane deductibles are percentage or dollar deductibles that are higher than for other perils, or causes of loss. They are calculated as a percentage of the dollar amount of coverage on the dwelling. The trigger for hurricane deductibles, or the point at which they apply, varies by company. Triggers have some common characteristics: they generally go into effect only when the National Weather Service issues a hurricane watch or warning and remain in effect for some time after a storm has passed. The intensity of hurricanes also affects the trigger. Hurricanes are classified on a scale of 1 to 5, with 5 as the highest intensity. If the policy has mandatory deductibles, this means the insurer will not sell homeowners coverage without a hurricane deductible. When a deductible is optional, policyholders may also choose a lower deductible in exchange for a higher premium (a buyback) or a higher deductible for a premium credit.
Beginning April 2009 insurers are allowed to change the named storm deductible on homeowners insurance policies that have been in effect for more than three years to no more than 4 percent of the value of the property insured. The insurer must notify the policyholder of the premiums savings associated with the new deductible and cannot apply more than one deductible to a loss resulting from any single incident.
Regular (Voluntary) Market: There is very little homeowners insurance written by private insurers in areas most prone to hurricane damage. Most homeowners coverage in coastal areas is underwritten by the Louisiana Citizens Property Insurance Corporation.
Hurricane Deductibles: Insurers accounting for about half of the market are using statewide deductibles of 2 to 5 percent.
Louisiana Citizens Property Insurance Corporation (http://www.lacitizens.com ): Provides insurance for residential and commercial property for those who cannot obtain it in the voluntary market. The Louisiana Citizens FAIR Plan and the Louisiana Citizens Coastal Plan operate as programs of the Louisiana Citizens Property Insurance Corporation.The Coastal Plan offers coverage in Zone 5, south of the Intercoastal Waterway, the most hurricane-vulnerable area. The Fair Plan offers coverage in the rest of the state. Both offer wind and hail only policies. See web site for details.
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MAINE HURRICANE DEDUCTIBLES
Hurricane deductibles are percentage or dollar deductibles that are higher than for other perils, or causes of loss. They are calculated as a percentage of the dollar amount of coverage on the dwelling. The trigger for hurricane deductibles, or the point at which they apply, varies by company. Triggers have some common characteristics: they generally go into effect only when the National Weather Service issues a hurricane watch or warning and remain in effect for some time after the storm has passed. The intensity of hurricanes also affects the trigger. Hurricanes are classified on a scale of 1 to 5 with 5 as the highest intensity. If the policy has mandatory deductibles, this means the insurer will not sell homeowners coverage without a hurricane deductible. When a deductible is optional, policyholders may also choose a lower deductible in exchange for a higher premium (a buyback) or a higher deductible for a premium credit.
Voluntary Market: As of 2007 (latest data available), at least one of the top 10 homeowners insurers has a hurricane deductible, which goes into effect in the event of a named storm. At least two companies in the top 10 have a wind/hail deductible, which applies to any loss caused by wind. Deductibles can be either a flat dollar amount or a percentage based on the amount of dwelling coverage.
Hurricane or Windstorm or Wind/Hail Deductibles: As of 2007 (latest data available), at least one of the top 10 insurers has a mandatory 3 percent hurricane deductible. Wind/hail deductibles range from $100 to $250 in areas of low vulnerability to wind. Another company has optional wind and hail deductibles of $500 to $2,500 and 1, 2 and 5 percent.
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MARYLAND HURRICANE DEDUCTIBLES (May 2009)
Hurricane deductibles are percentage or dollar deductibles that are higher than for other perils, or causes of loss. They are calculated as a percentage of the dollar amount of coverage on the dwelling. The trigger for hurricane deductibles, or the point at which they apply, varies by company. Triggers have some common characteristics: they generally go into effect only when the National Weather Service issues a hurricane watch or warning and remain in effect for some time after the storm has passed. The intensity of hurricanes also affects the trigger. Hurricanes are classified on a scale of 1 to 5 with 5 as the highest intensity. If the policy has mandatory deductibles, this means the insurer will not sell homeowners coverage without a hurricane deductible. When a deductible is optional, policyholders may also choose a lower deductible in exchange for a higher premium (a buyback) or a higher deductible for a premium credit.
Maryland state law requires insurers that want to use a deductible that exceeds 5 percent of the value of a dwelling (coverage A) to file a request with the Insurance Commissioner for approval. Hurricane deductibles are activated only when the National Hurricane Center issues a hurricane warning in any part of the state and ends 24 hours after the last warning. Insurers must notify policyholders of the deductibles and must explain how they are applied. In addition, as of June 2009 insurers must offer at least one acturially justified premium discount to homeowners who submit proof of specified improvements that reduce losses (damage) from storms.
Voluntary Market: As of 2007 (latest data available), at least two of the top 10 homeowners insurers and one additional company not in the top 10 use a wind/hail deductible, which covers losses from wind from any source. At least one of the top 10 companies has a hurricane deductible. All four companies require a mandatory deductible in coastal areas.
Deductibles: Mandatory 2 percent hurricane deductible for a major insurer. Wind/hail deductibles range from 1 to 5 percent and $100 to $5,000. At least one company offers buybacks in noncoastal areas. Optional wind/hail deductibles are 1, 2 and 5 percent and $500 to $1,000.
Trigger: Hurricane declared by the National Weather Service, up to 72 hours after the last hurricane watch or warning.
Maryland Joint Insurance Association (FAIR Plan, http://www.mdinsurance.state.md.us ): Insures homeowners and businesses who have not been able to find coverage elsewhere. See web site for details.
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MASSACHUSETTS HURRICANE DEDUCTIBLES
Hurricane deductibles are percentage or dollar deductibles that are higher than for other causes of loss. As a rule, they are calculated as a percentage of the dollar amount of coverage on the dwelling. The trigger for hurricane deductibles, or the point at which they apply, varies by company. Triggers have some common characteristics: they generally go into effect only when the National Weather Service issues a hurricane watch or warning and remain in effect for 24 to 48 hours after the storm has passed. The intensity of hurricanes also affects the trigger. Hurricanes are classified on a scale of 1 to 5, with 5 as the highest intensity. If the policy has mandatory deductibles, this means the insurer will not sell homeowners coverage without a hurricane deductible. When a deductible is optional, policyholders may also choose a lower deductible in exchange for a higher premium (a buyback) or a higher deductible for a premium credit.
Voluntary Market: As of 2007 (latest data available), at least two homeowners insurers are using hurricane deductibles and one uses a wind/hail deductible.
Deductibles:Hurricane deductibles: Dukes (Martha’s Vineyard), Nantucket and Barnstable (Cape Cod) Counties: mandatory 2 to 5 percent. Other coastal counties and inland counties: 1 and 2 percent. Wind/hail deductibles where available range from $100 to $250.
Massachusetts Property Insurance Underwriting Association (FAIR Plan, http://www.mpiua.com ): Insures properties where the homeowner or business has not been able to find coverage elsewhere. The plan uses a windstorm/hail deductible for any type of wind damage. See web site for details.
Massachusetts Market Assistance Plan (MA-MAP): The Massachusetts Market Assistance Plan is a voluntary network of participating homeowners insurance companies and insurance brokers to assist residents in obtaining homeowners insurance.
Information Sources:
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MISSISSIPPI HURRICANE DEDUCTIBLES (May 2009)
Hurricane deductibles are percentage or dollar deductibles that are higher than for other perils, or causes of loss. They are calculated as a percentage of the dollar amount of coverage on the dwelling. The trigger for hurricane deductibles, or the point at which they apply, varies by company. Triggers have some common characteristics: they generally go into effect only when the National Weather Service issues a hurricane watch or warning and remain in effect for some time after the storm has passed. The intensity of hurricanes also affects the trigger. Hurricanes are classified on a scale of 1 to 5 with 5 as the highest intensity. If the policy has mandatory deductibles, this means the insurer will not sell homeowners coverage without a hurricane deductible. When a deductible is optional, policyholders may also choose a lower deductible in exchange for a higher premium (a buyback) or a higher deductible for a premium credit.
Voluntary Market: Where mandatory, insurers are required by law to provide buyback options to their policyholders, see above. As of 2007 (latest data available), at least three of the top 10 homeowners insurers in the state use a mandatory hurricane deductible. At least two of the top 10 companies use a mandatory wind and hail deductible.
Hurricane/Wind/Hail Deductible: Hurricane deductibles range from 1 to 15 percent. Wind and hail deductibles range from $250 to $2,500 and from 1 to 5 percent. In 2008 the largest insurer in the state required a 5 percent hurricane deductible, reduced to 2 percent for policyholders with auto insurance with the same company.
Mississippi Windstorm Underwriting Association (Wind Pool) (http://www.msplans.com ): Insures homeowners who have not been able to find coverage elsewhere in the Coast areas for windstorm and hail damage only. See web site for details.
Mississippi Residential Property Insurance Underwriting Association (MRPIUA, http://www.msplans.com ): Insures owners of one- and two-family dwellings in the state who have not been able to find coverage elsewhere for windstorm, hail and fire and extended coverage. The MRPIUA does not provide wind and hail coverage in the three coastal counties closest to the shore. This coverage is available at the Mississippi Windstorm Underwriting Association. See web site for details.
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NEW JERSEY HURRICANE DEDUCTIBLES
Hurricane Deductibles are percentage or dollar deductibles that are higher than for other perils, or causes of loss. They are calculated as a percentage of the dollar amount of coverage on the dwelling. The trigger for hurricane deductibles, or the point at which they apply, varies by company. Triggers have some common characteristics: they generally go into effect only when the National Weather Service issues a hurricane watch or warning and remain in effect for 24 to 48 hours after the storm has passed. The intensity of hurricanes also affects the trigger. Hurricanes are classified on a scale of 1 to 5, with 5 as the highest intensity.
In New Jersey, hurricane deductibles approved by the Department of Banking and Insurance apply to losses from a storm designated a hurricane by the National Weather Service but only if sustained winds speeds of 74 mph have been measured somewhere in the state. Any hurricane deductible used on a statewide basis must be optional and must allow the policyholder to reduce the deductible to the amount of the standard policy deductible by paying a higher premium. Mandatory deductibles may be used only on properties located in the 92 coastal zip codes (see FAIR Plan and WindMAP below), and policyholders who must have these deductibles may be able to reduce or eliminate them if the property has certain construction features, such as storm shutters and special roof construction, that would provide protection to the property from damage in the event of a hurricane. Insurance companies that use mandatory deductibles must have a Loss Mitigation Plan that informs the policyholder what criteria must be met to reduce or eliminate the deductible. The homeowner’s efforts to control potential loss may need to be inspected or certified. When mandatory deductibles apply, insurers will not sell homeowners insurance without a hurricane deductible. With optional deductibles, policyholders may choose lower deductibles in exchange for a higher premium (a buyback) or higher deductibles for a premium credit.
Voluntary Market: Mandatory in coastal zip codes, usually shore to 5 miles inland.
Hurricane Deductibles: As of 2007 (latest data available), 4 percent in coastal areas closest to the ocean, 2 percent and 3 percent further inland. 5 percent deductible available more than 5 miles inland; some mandatory deductibles may be reduced if the homeowner takes steps to mitigate damage.
Trigger: Category 1 hurricane (wind at least 74 mph), measured by the National Weather Service, usually 12 hours before the hurricane force winds are measured until 12 hours after the last hurricane force winds are measured in the state.
New Jersey Insurance Underwriting Association (FAIR Plan, http://www.njiua.org ): Insures one- to four family homes where the owner has not been able to find coverage elsewhere. Coverage is limited but perils include wind. See web site for details.
Windstorm Market Assistance Program (WindMAP, http://www.njiua.org/windmap.html ): The WindMAP is a network of insurance companies, agents and brokers who help qualified homeowners in coastal areas obtain homeowners coverage. See web site for details.
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NEW YORK HURRICANE DEDUCTIBLES (APRIL 2008)
Hurricane deductibles are percentage or dollar deductibles that are higher than for other causes of loss. They are calculated as a percentage of the dollar amount of coverage on the dwelling. The trigger for hurricane deductibles, or the point at which they apply, varies by company. Triggers have some common characteristics: they generally go into effect only when the National Weather Service issues a hurricane watch or warning and remain in effect for 24 to 48 hours after the storm has passed. The intensity of hurricanes also affects the trigger. Hurricanes are classified on a scale of 1 to 5, with 5 as the highest intensity. If the policy has mandatory deductibles, this means the insurer will not sell homeowners coverage without a hurricane deductible. When a deductible is optional, policyholders may also choose a lower deductible in exchange for a higher premium (a buyback) or a higher deductible for a premium credit.
Regular (Voluntary) Market: Generally mandatory in coastal areas.
Hurricane Deductibles: Insurers that account for almost half of the state market have mandatory 5 percent deductibles.
Where the Deductible Applies: The five boroughs of New York City (Manhattan, Bronx, Brooklyn, Queens and Staten Island, Nassau and Suffolk Counties and parts of Westchester County. Hurricane deductibles as of March 2008 by company can be viewed on the New York State Department of Insurance Web site at http://www.ins.state.ny.us in the Homeowners Resources Center under "Windstorm Deductibles".
If the policy contains a hurricane deductible, insurers must send the policyholder a disclosure statement. According to the New York State Insurance Department, the approved programs provide windstorm coverage subject to certain mandatory deductibles, depending on the geographical location of the risk. The event that triggers the use of these deductibles varies from insurer to insurer. Some insurers use a Category One hurricane as the triggering event while others use a Category Two hurricane. In any event, the hurricane would have to be designated as such by either the National Weather Service or the National Hurricane Center. Other insurers use either a specific mile-per-hour wind speed as a trigger or a mandatory deductible for all windstorm loss.
New York Property Insurance Underwriting Association (FAIR Plan, http://www.nypiua.com ): The plan insures residential and commercial properties in the state where the homeowner cannot find coverage elsewhere. "Extended coverage" includes windstorm coverage. See web site for details.
Coastal Market Assistance Plan (C-MAP, http://www.nypiua.com/cmap.html ): The C-MAP assists policyholders living along the coast locate an insurer willing to provide homeowners coverage. See web site for details.
Information Sources:
NORTH CAROLINA HURRICANE DEDUCTIBLES
Hurricane deductibles are percentage or dollar deductibles that are higher than for other perils, or causes of loss. They are calculated as a percentage of the dollar amount of coverage on the dwelling. The trigger for hurricane deductibles, or the point at which they apply, varies by company. Triggers have some common characteristics: they generally go into effect only when the National Weather Service issues a hurricane watch or warning and remain in effect for 24 to 48 hours after the storm has passed. The intensity of hurricanes also affects the trigger. Hurricanes are classified on a scale of 1 to 5, with 5 as the highest intensity. If the policy has mandatory deductibles, this means the insurer will not sell homeowners coverage without a hurricane deductible. When a deductible is optional, policyholders may also choose a lower deductible in exchange for a higher premium (a buyback) or a higher deductible for a premium credit.
Regular (Voluntary) Market: Some companies use a wind/hail deductible for all wind damage.
Deductibles: As of 2007, (latest data available), 1 percent, 2 percent, 5 percent and $1,000 in coastal areas; flat dollar deductibles of $250-$2,500 are available elsewhere in the state.
North Carolina Joint Underwriting Association (FAIR Plan, http://www.ncjua-nciua.org ): Insures residential and commercial properties statewide where the homeowner has not been able to find property coverage elsewhere except in barrier islands adjacent to the Atlantic Ocean. See web site for details.
North Carolina Insurance Underwriting Association (Beach Plan, http://www.ncjua-nciua.org ): Insures properties where the homeowner has not been able to find coverage elsewhere for windstorm and hail damage only in 18 coastal counties. See web site for details.
Information Sources:
RHODE ISLAND HURRICANE DEDUCTIBLES (AUGUST 2008)
Hurricane deductibles are percentage or dollar deductibles that are higher than for other perils, or causes of loss. They are calculated as a percentage of the dollar amount of coverage on the dwelling. If the policy has mandatory deductibles, the insurer will not sell homeowners coverage without a hurricane deductible. When a deductible is optional, policyholders may also choose a lower deductible in exchange for a higher premium (a buyback) or a higher deductible for a premium credit.
Insurers in Rhode Island are not allowed to deny coverage based solely on proximity to the coast.
Hurricane Deductibles: Insurers may apply a hurricane deductible on homeowners policies of no more than 5 percent of a home’s insured value. Windstorm deductibles may not be used. (Windstorm deductibles apply to damage from any kind of wind, not solely from hurricanes.) Insurers may offer a flat dollar deductible instead of or in addition to a percentage deductible but the total deductible may not exceed 5 percent of the insured value of the property. Premium credits, or discounts, must be provided if policies have hurricane deductibles. If hurricane deductibles are used the insurance company would experience lower claims payouts in the event of a hurricane. Insurers must provide notice of hurricane deductibles and must offer examples. In addition, insurers must calculate the dollar amount of the deductible and show it on the declarations page of the policy.
Trigger: The deductible will only be in effect when the National Hurricane Center issues a hurricane warning for any part of Rhode Island and will remain in effect for 24 hours after the last warning.
Mitigation: Insurers can require mitigation measures only in certain specified zones and must waive the hurricane deductible if the policyholder implements mitigation measures. See http://www.dbr.ri.gov/documents/rules/insurance/InsuranceRegulation110.pdf
Rhode Island Joint Reinsurance Association: Insures homeowners and commercial property owners who have not been able to find coverage in the voluntary market. See http://www.rijra.com/.
Information Sources:
SOUTH CAROLINA HURRICANE DEDUCTIBLES
Hurricane deductibles are percentage or dollar deductibles that are higher than for other causes of loss. They are calculated as a percentage of the dollar amount of coverage on the dwelling. The trigger for hurricane deductibles, or the point at which they apply, varies by company. Triggers have some common characteristics: they generally go into effect only when the National Weather Service issues a hurricane watch or warning and remain in effect for 24 to 48 hours after the storm has passed. The intensity of hurricanes also affects the trigger. Hurricanes are classified on a scale of 1 to 5, with 5 as the highest intensity. If the policy has mandatory deductibles, this means the insurer will not sell homeowners coverage without a hurricane deductible. When a deductible is optional, policyholders may also choose a lower deductible in exchange for a higher premium (a buyback) or a higher deductible for a premium credit.
Regular (Voluntary) Market: Mandatory or optional, depending on the insurer.
Hurricane Deductibles: As of 2007 (latest data available), generally 2 percent-5 percent in beach territories, flat dollar deductibles of $1,000-$20,000 are available. 10 percent-15 percent available in other areas of the state.
South Carolina Wind and Hail Underwriting Association (Wind Pool, http://www.scwind.com ): The association insures properties where the homeowner has not been able to find coverage elsewhere for windstorm and hail damage from any type of windstorm. The Wind Pool operates in certain coastal areas. See web site for details.
Information Sources:
TEXAS HURRICANE DEDUCTIBLES (JULY 2008)
Hurricane deductibles are percentage or dollar deductibles that are higher than for other perils, or causes of loss. They are calculated as a percentage of the dollar amount of coverage on the dwelling. The trigger for hurricane deductibles, or the point at which they apply, varies by company. Triggers have some common characteristics: they generally go into effect only when the National Weather Service issues a hurricane watch or warning and remain in effect for 24 to 48 hours after the storm has passed. The intensity of hurricanes also affects the trigger. Hurricanes are classified on a scale of 1 to 5, with 5 as the highest intensity. If the policy has mandatory deductibles, this means the insurer will not sell homeowners coverage without a hurricane deductible. When a deductible is optional, policyholders may also choose a lower deductible in exchange for a higher premium (a buyback) or a higher deductible for a premium credit.
Note: Under Texas law, the deductible applies to windstorm and hail damage from any type of wind storm, not only named storms or hurricanes.
Regular (Voluntary) Market: Windstorm and Hail Deductible: Generally 1 percent inland; 2 percent on the coast with some at 3 percent.
Texas Windstorm Insurance Association (TWIA, http://www.twia.org ): Provides adequate wind and hail coverage when it is not available in the insurance marketplace for 14 counties along the Texas gulf coast and parts of Harris County (Galveston Bay). See web site for details.
Texas Fair Access to Insurance Requirements Plan Association (FAIR Plan, http://www.texasfairplan.org ): Provides residential property insurance to qualified homeowners who cannot obtain insurance from licensed insurance companies. The Fair plan operates statewide but cannot provide wind and hail coverage in areas that are eligible for inclusion in the TWIA (The TWIA covers only 14 coastal counties and five communities in Harris County [Galveston Bay].) See web site for details.
Helpinsure.com ( http://www.helpinsure.com/ ): Administered by the Texas Department of Insurance, Helpinsure.com has several resources available to help coastal residents find wind and hail insurance coverage. It includes a Wind and Hail Insurance Resource Page with information about wind and hail coverage and companies that are providing the coverage in coastal areas (http://www.helpinsure.com/lcenter/residential.html).
Information Sources:
VIRGINIA HURRICANE DEDUCTIBLES
Hurricane deductibles are percentage or dollar deductibles that are higher than for other perils, or causes of loss. They are calculated as a percentage of the dollar amount of coverage on the dwelling. The trigger for hurricane deductibles, or the point at which they apply, varies by company. Triggers have some common characteristics: they generally go into effect only when the National Weather Service issues a hurricane watch or warning and remain in effect for 24 to 48 hours after the storm has passed. The intensity of hurricanes also affects the trigger. Hurricanes are classified on a scale of 1 to 5 with 5 as the highest intensity. If the policy has mandatory deductibles, this means the insurer will not sell homeowners coverage without a hurricane deductible. When a deductible is optional, policyholders may also choose a lower deductible in exchange for a higher premium (a buyback) or a higher deductible for a premium credit.
If the insurer has increased the hurricane deductible, it must inform the policyholder and explain how the new deductible will work.
Voluntary Market: Mandatory or optional, depending on the insurer and proximity to the coast.
Hurricane Deductible: As of 2007 (latest data available), three of the top 10 homeowners insurers do not use a hurricane deductible. Five insurers have mandatory hurricane deductibles for coastal properties, range: 2-5 percent of the policy limit. Other companies use hurricane deductibles of 1-2 percent. Some insurers offer the option of a flat dollar hurricane deductible, ranging from $500 to $5,000, with $1,000 the most common.
Trigger: Hurricane watch or warning issued by the National Weather Service.
Virginia Property Insurance Association (FAIR Plan, http://www.vpia.com ): The association provides dwelling and commercial property coverages to individuals and businesses throughout the state who are unable to obtain coverage through the voluntary insurance market. See web site for details.
Information Sources:
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THE SAFFIR/SIMPSON CLASSIFICATION SYSTEM FOR HURRICANES
Category |
Wind speeds |
Pressures |
Storm surge |
Damage |
| 1 | 74-95 mph | Greater than 980 mb | 4-5 ft. | Light |
| 2 | 96-110 mph | 965-979 mb | 6-8 ft. | Moderate |
| 3 | 111-130 mph | 945-964 mb | 9-12 ft. | Extensive |
| 4 | 131-155 mph | 920-944 mb | 13-18 ft. | Extreme |
| 5 | More than 155 mph | Less than 920 mb | Greater than 18 ft. | Catastrophic |
| Source: U.S. Department of Commerce, National Oceanic and Atmospheric Administration, National Hurricane Center. |
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HURRICANES AND RELATED DEATHS IN THE UNITED STATES, 1990-2008
Year |
Total hurricanes |
Made landfall as hurricane in the U.S. |
Deaths (1) |
| 1990 | 1 | 0 | 0 |
| 1991 | 1 | 1 | 18 |
| 1992 | 4 | 1 | 27 |
| 1993 | 1 | 1 | 3 |
| 1994 | 1 | 0 | 8 |
| 1995 | 3 | 3 | 29 |
| 1996 | 3 | 2 | 59 |
| 1997 | 1 | 1 | 6 |
| 1998 | 10 | 3 | 23 |
| 1999 | 8 | 2 | 60 |
| 2000 | 8 | 0 | 4 |
| 2001 | 9 | 0 | 42 |
| 2002 | 4 | 1 | 5 |
| 2003 | 7 | 2 | 24 |
| 2004 | 9 | 6 (2) | 59 |
| 2005 | 15 | 7 | 1,518 |
| 2006 | 5 | 0 | 0 |
| 2007 | 6 | 1 | 1 |
| 2008 | 8 | 4 (3) | 41 (4) |
(1) Includes fatalities from high winds of less than hurricane force from tropical storms.
(2) One hurricane (Alex) is considered a strike but not technically a landfall.
(3) Includes one hurricane (Hanna) which made landfall as a tropical storm.
(4) Includes six deaths from tropical storms.
Source: Insurance Information Institute from data supplied by the U.S. Department of Commerce, National Oceanic and Atmospheric Administration, National Hurricane Center; ISO. |
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YEARS WITH CATASTROPHIC HURRICANE
LOSSES IN THE UNITED STATES SINCE 1998 (1)
|
1998 |
1999 |
2002 |
2003 |
2004 |
2005 |
| Frequency | 2 | 5 | 1 | 2 | 5 | 6 |
| Claims | 729,450 | 695,850 | 133,700 | 527,800 | 2,259,150 | 3,315,550 |
| Personal (2) | 72.8% | 73.9% | 83.8% | 82.3% | 73.6% | 70.0% |
| Commercial (2) | 15.7% | 17.2% | 3.0% | 4.1% | 13.4% | 9.3% |
| Vehicles | 11.5% | 9.0% | 13.2% | 13.5% | 12.9% | 20.7% |
| | | | | | | |
| Losses (3) ($ millions) | $3,315 | $2,315 | $430 | $1,775 | $22,900 | $58,337 |
| Personal (2) | 34.9% | 39.4% | 66.5% | 74.9% | 65.7% | 49.8% |
| Commercial (2) | 59.8% | 55.6% | 26.7% | 14.0% | 29.6% | 44.7% |
| Vehicles | 5.4% | 5.0% | 6.7% | 11.1% | 4.6% | 5.5% |
| | | | | | | |
| Average claim severity | | | | | | |
| Personal (2) | $2,176 | $1,773 | $2,554 | $3,061 | $9,049 | $12,515 |
| Commercial (2) | $17,331 | $10,769 | $28,750 | $11,376 | $22,337 | $84,953 |
| Vehicles | $2,124 | $1,856 | $1,638 | $2,755 | $3,626 | $4,698 |
(1) ISO's Property Claim Services Unit currently defines catastrophes as events causing at least $25 million in direct insured losses to property and affecting significant numbers of insurers and insureds. There were no catastrophic hurricanes in 2000, 2001, 2006 or 2007. Stated in dollars when occurred.
(2) Property losses excluding vehicle losses.
(3) Does not include flood damage covered by the federally administered National Flood Insurance Program.
Source: ISO's Property Claim Services Unit. |
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CATASTROPHIC HURRICANE LOSSES IN THE UNITED STATES, 1998-2007
Year |
Number of catastrophic hurricanes (1) |
Insured loss (In 2007 dollars) (2) |
Year |
Number of catastrophic hurricanes (1) |
Insured loss (In 2007 dollars) (2) |
| 1998 | 2 | $4.2 billion | 2003 | 2 | $2.0 billion |
| 1999 | 5 | 2.9 billion | 2004 | 5 | 25.1 billion |
| 2000 (3) | 0 | NA | 2005 | 6 | 61.9 billion |
| 2001 (3) | 0 | NA | 2006 (3) | 0 | NA |
| 2002 | 1 | 496.0 million | 2007 (3) | 0 | NA |
(1) Major hurricanes as defined by ISO.
(2) Adjusted to 2007 dollars by ISO. Does not include flood damage covered by the federally administered National Flood Insurance Program.
(3) No wind event met ISO's Property Claim Services Unit catastrophe definition of a single incident or a series of related incidents, man-made or natural disasters that causes insured property losses of at least $25 million and affects a significant number of policyholders and insurers.
NA=Not applicable.
Source: ISO's Property Claim Services Unit. |
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TOP 15 MOST COSTLY HURRICANES IN THE UNITED STATES
($ millions)
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Estimated insured loss (1) |
Rank |
Date |
Location |
Hurricane |
Dollars when occurred |
In 2008 dollars (2) |
| 1 | Aug. 25-30, 2005 | AL, FL, GA, LA, MS, TN | Katrina | $41,100 | $45,309 |
| 2 | Aug. 24-26, 1992 | FL, LA | Andrew | 15,500 | 23,786 |
| 3 | Oct. 24, 2005 | FL | Wilma | 10,300 | 11,355 |
| 4 | Sep. 12-14, 2008 | AR, IL, IN, KY, LA, MO, OH, PA, TX | Ike | 10,655 (3) | 10,655 (3) |
| 5 | Aug. 13-14, 2004 | FL, NC, SC | Charley | 7,475 | 8,520 |
| 6 | Sep. 15-21, 2004 | AL, DE, FL, GA, LA, MD, MS, NJ, NY, NC, OH, PA, TN, VA, WV | Ivan | 7,110 | 8,104 |
| 7 | Sep. 17-22, 1989 | GA, NC, PR, SC, VA, U.S. Virgin Islands | Hugo | 4,195 | 7,284 |
| 8 | Sep. 20-26, 2005 | AL, AR, FL, LA, MS, TN, TX | Rita | 5,627 | 6,203 |
| 9 | Sep. 3-9, 2004 | FL, GA, NC, NY, SC | Frances | 4,595 | 5,237 |
| 10 | Sep. 15-29, 2004 | DE, FL, GA, MD, NJ, NY, NC, PA, PR, SC, VA | Jeanne | 3,655 | 4,166 |
| 11 | Sept. 21-28, 1998 | AL, FL, LA, MS, PR, U.S. Virgin Islands | Georges | 2,955 | 3,903 |
| 12 | Oct. 4, 1995 | FL, AL, GA, NC, SC, TN | Opal | 2,100 | 2,967 |
| 13 | Sep. 14-17, 1999 | NC, NJ, VA, FL, SC, PA, 10 other states | Floyd | 1,960 | 2,533 |
| 14 | Sep. 11, 1992 | Kaui and Oahu, HI | Iniki | 1,600 | 2,455 |
| 15 | Sep. 5, 1996 | NC, SC, VA, MD, WV, PA, OH | Fran | 1,600 | 2,196 |
(1) Property coverage only. Does not include flood damage covered by the federally administered National Flood Insurance Program.
(2) Adjusted to 2008 dollars by the Insurance Information Institute.
(3) Estimated.
Source: ISO's Property Claim Services Unit; Insurance Information Institute. |
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BACKGROUND
In 1992, Hurricane Andrew caused $15.5 billion insured losses, the most expensive storm ever for insurers, with claims costing nearly four times as much as the previous most costly storm, Hurricane Hugo in 1989. It soon became apparent through computer-based models of storms and residential development patterns that homeowners insurers were far more vulnerable to huge weather-related losses than they had thought. Some of the largest homeowners insurers found it difficult to arrange for the reinsurance (insurance for insurance companies) coverage they needed to protect their bottom line because reinsurers were unwilling to assume so much risk. To get coverage from reinsurers, they had to agree to greatly reduce their potential maximum losses from severe wind and hailstorms by requiring their policyholders to bear a greater share of the cost. This was accomplished by switching over to percentage deductibles that not only increase the deductible amount across the board but force homeowners with expensive homes to take a higher financial burden than those with homes of lesser value.
The National Weather Service classifies tropical storms as low pressure systems forming over tropical areas, with winds of a minimum of 40 mph. Hurricanes are classified by using the Saffir/Simpson intensity scale which measures atmospheric pressure in terms of millibars (mb) or inches of mercury, along with wind speeds, storm surge and damage.
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© Insurance Information Institute, Inc. - ALL RIGHTS RESERVED
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Additional Documents
|  Hurricane Study - Hurricane Andrew devastated south Florida in 1992 causing insured losses of $20 billion and economic losses of $34 billion (in current dollars). In this study, the potential insurance and economic consequences of an Andrew-like storm are examined. The written study is accompanied by a PowerPoint presentation that details hurricane risk in the United State generally and Florida specifically.
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