Earthquakes, floods, and other disasters can seriously disrupt normal life. Services may not be available, transportation may be cut off and roads may be blocked. In some cases, you may be forced to evacuate. Be ready to respond to any situation by assembling and maintaining a Disaster Supplies Kit.
Click 'Read More' below for the Disaster Supplies Plan.
As hurricane season approaches we want to remind you that hurricane preparedness is of the utmost importance. Hurricane Sandy, the second costliest storm in U.S. history causing an estimated $50 billion in damage certainly show how devastating a storm can be and reminds us that we should not be complacent, but be prepared for severe weather events. We urge you to take the time to put together your personal hurricane kit to protect your family and property in the event that a storm impacts us this year.
In addition to preparing for the safety of your family, it is a good time to review your homeowners policy with us to make absolutely certain that you have the coverages you need to protect your property.
Replacement Cost - the differences between the replacement cost of your home and its market value in today's economy is a prevalent topic of discussion. With today's depressed market values, it i even more important that your Homeowners Coverage A limit is insured for 100% of the replacement value of your home.
Deductibles - your homeowners policy has two deductibles, one for 'all other perils' (AP) and one for 'hurricanes' or it may be for all 'wind damage.' Your MPIUA policy will have a higher deductible for any 'wind' damage. But your UPC Insurance policy would have a 'Hurricane' deductible that applies only during a 'named hurricane.' Otherwise, your lower 'all other perils' deductible would be applied.
Flood - we want to remind your that your homeowner's policy does not cover flood. Should a storm occur and your property becomes flooded, in order for you to have coverage you must have a separate flood policy.
By Randy Troutman On October 10, 2012
When discussing insured value and how a boat insurance policy will pay, most people think about a total loss. This is important but the majority of claims are partial losses. Depending on how your policy responds, you could pay several thousand dollars above your deductible.
A boat insurance policy has two different ways to pay in the event of a partial loss. One is to replace the damaged items without deducting for depreciation. The second is to depreciate the damaged items.
Depreciated Value is defined as Replacement Cost less depreciation. Most boat insurance companies use a non-published depreciation schedule that applies to partial losses. For example, the depreciation on a stern drive might be 7% per year, whereas the annual depreciation on canvas might be 15%.
Each insurance company will apply Replacement Cost and Depreciated Value differently. Some boat insurance companies do not provide replacement cost coverage for partial losses. If the boat is insured on this policy form, then no matter the type of loss, the replacement parts are subject to depreciation. If the part costs $2,000 and is subject to 20% depreciation, you would be paid $2,000, less $400 depreciation, less your deductible.
Most boat insurance companies provide replacement cost for partial losses until the boat (or items) reaches a certain age. The age will vary with each insurance company. Once a boat or item reaches that age, all partial losses are settled on an actual cash value basis.
The boat insurance companies that provide replacement cost for partial losses usually name specific items that are subject to depreciation regardless of the age. Canvas, sails, cloth, trailers and plastics are examples of specifically named items. These items generally have a limited life span. They also name specific items that are subject to depreciation based on the item’s age. Outboards, stern drives and internal machinery are examples of items that change from replacement cost to depreciated value when they reach a certain age. Most insurance companies go by the age of the item to deduct depreciation. However, each insurance company has different specifically-named items and different ages which determine whether those items will be on replacement cost or depreciated value.
It’s helpful to know that most companies will apply a reduced depreciation if you agree to replace with a remanufactured unit. A stern drive is a good example of an item that can be replaced with a remanufactured unit. This can save thousands of dollars in depreciation.
Replacement Cost for a partial loss is what you want when available. A depreciated value can cost you several thousand dollars. United Marine Underwriters represents several boat insurance companies and we will be glad to discuss how they apply depreciation.
Below are two examples to help explain how replacement cost vs. depreciated value work.
Example 1 is an 8 year old stern drive boat with a $500 hull deductible that hits a submerged object. The replacement cost to the stern drive is $8000.
Insurance company A provides replacement cost coverage until the stern drive is six years old. They will apply 60% depreciation (7.5% per year) to the $8000 replacement drive and then apply the $500 deductible. Insurance company A will pay $2700 ($8,000 less $4,800 depreciation, less $500 hull deductible).
Insurance company B provides replacement cost coverage until the stern drive is 10 years of age. They will pay $7500 ($8000 less the $500 hull deductible).
Example 2 is a boat with a $500 hull deductible that suffers wind damage to the fly bridge enclosure. The fly bridge enclosure is 2 years old and the replacement cost is $5000.
Insurance company A provides replacement cost until the fly bridge enclosure is three years old. They will pay $4,500 ($5,000 less the $500 hull deductible).
Insurance company B provides replacement cost but specifically names canvas as a depreciated item. Insurance company B will apply 20 percent depreciation to the replacement cost. They will pay $3,500 ($5000 replacement cost, less $1,000 depreciation, less the $500 hull deductible).
The risk of catastrophic loss during hurricane season requires an innovative approach to
property coverage—and a rapid response when losses occur. For over 40 years, Lexington
Insurance Company has helped our brokers and clients prepare for, protect against, and recover
from catastrophic losses. We are the leading U.S.-based surplus lines insurer, and a property
and casualty market leader.
Make sure you’re a step ahead of risk this hurricane season. Watch LexTV for the latest
on hurricane risk and coverage solutions.
Hurricane 2012 Update
Dr. Phil Klotzbach updates his 2012 seasonal hurricane forecast and shares his outlook for the remainder of the season. This episode also introduces Lexington's new Hurricane Infographic which will help streamline the understanding of a hurricane event.
All interests from Louisiana to Mississippi, Alabama and the Florida Panhandle should rush preparations to completion.
If peak storm surge occurs at high tide, peak water levels above ground could reach the following depths as Isaac moves by:
- Southeast Louisiana, Miss., Ala. coasts: 6-12 feet
- South-central Louisiana: 3-6 feet
- Florida Panhandle: 3-6 feet
- Florida west coast from Apalachicola to south of Naples: 1-3 feet
Even as Isaac's center of circulation moves by, locally heavy rainbands can be expected. Another 1-3" of rain is possible in central and south Florida with locally higher amounts. Isolated storm total rainfalls of 15" are possible in central and South Florida. Rainfall amounts over 10" are likely as Isaac slows down immediately prior to, and after landfall, in southeast Louisiana, southern Alabama, Mississippi and the western Florida Panhandle. Isolated 20" amounts are possible.
Hurricane threat index, current information, satellite imagery, watches/warnings and computer model track graphics are below.
(TRACK ISAAC: Interactive hurricane tracker)
View more expert analysis from Senior Meteorologist Stu Ostro at our Tropical Update article.
You can find a detailed look at the Gulf Coast storm surge, wind and flooding threats by clicking on this link and you can ensure you know which friends may be in harms way through our My Friends Weather tool.
(MORE: Live updates and analysis on Isaac)
Before a Flood
What would you do if your property were flooded? Are you prepared?
Even if you feel you live in a community with a low risk of flooding, remember that anywhere it rains, it can flood. Just because you haven't experienced a flood in the past, doesn't mean you won't in the future. Flood risk isn't just based on history; it's also based on a number of factors including rainfall , topography, flood-control measures, river-flow and tidal-surge data, and changes due to new construction and development.
Flood-hazard maps have been created to show the flood risk for your community, which helps determine the type offlood insurance coverage you will need since standard homeowners insurance doesn't cover flooding. The lower the degree of risk, the lower the flood insurance premium.
In addition to having flood insurance, knowing following flood hazard terms will help you recognize and prepare for a flood.
To prepare for a flood, you should:
TYPE OF FLOOD MAP CHANGES
WHAT YOU SHOULD KNOW WHAT YOU SHOULD SAY Low- or moderate-risk zone (B, C, X) changing to a high-risk zone (e.g. AE, VE) or Change in Base Flood Elevation
Grandfathering Offers Savings·
The National Flood Insurance Program (NFIP) has “grandfather” rules to recognize policyholders who have either built in compliance with the flood map or who maintain continuous coverage. These rules allow such policyholders to benefit in the rating for that building.
· Grandfathering is available for new purchasers as well as existing customers.
· Always use the new map if it will provide a more favorable premium (lower rate).
· Your building has been designated in a high-risk area for flooding.
· You will be required to purchase a flood policy if you carry a mortgage from a federally regulated lender.
· If you don’t carry a mortgage, you should protect your home with flood insurance. National statistics show that you are 3 times more likely to have damage by a flood than by fire.
· Purchasing before the map revision allows you to save on insurance.
Loyal Customers Can Keep Existing Zone (Pre- & Post- FIRM)
· Customers, who buy a policy before maps are adopted and maintain coverage, can retain the lower-risk zone rate.
· Eligible customers can purchase a PRP now. It will renew to an X zone rated standard policy.
· Have a policy: maintain continuous coverage.
· A policy can be assigned to future property owner.
· Buy now to save later.
· Renew to stay protected and save money.
Show Compliance With a Previous FIRM for Lower Costs (Post- FIRM only)
· To keep existing zones when the structure was built: Get a copy of FIRM effective at time of construction or a compliance letter from community official.
· To keep existing BFE when the structure was built: Get Elev. Cert, and copy of FIRM effective at time of construction; or compliance letter from the community official.
· Lower cost options: show building was built in compliance at time of construction.
· Makes you eligible for a lower rate, keeps costs DOWN.
High-risk zone (e.g. AE, VE) changing to a low- or moderate-risk zone (X, shaded X)
Conversion Offers Savings · Write a Preferred Risk Policy (PRP).
· Use existing policy’s current effective date, and use closest coverage limit or next highest options if no exact match.
· Submit PRP application, and insured signed conversion form.
· Your risk is reduced, not removed!
· Eligible for low-cost, Preferred Risk Policy
· Stay protected and get money back once maps are adopted.
· No gaps in coverage; no additional money up front.
· 20-25% of all flood claims occur in low- or moderate-risk areas.
Review of Current Coverage Ensures Protection·
Do they have flood insurance?
· If so, is the building limit up-to-date?
· Contents coverage provided and limit up-to-date?
· Homeowners insurance doesn’t cover damage due to floods.
· Floods happen anytime, anywhere.
· Your home is a major investment—protect it.