2020 has been a year that no one will ever forget. There are three things we want to look at in 2020 and how they could impact the future of coastal private flood insurance.

  1. Covid
  2. Social Injustice
  3. Hurricanes

 

                                                           Covid

When Covid hit in March of 2020 it caused many businesses to come to a crashing halt.

The hospitality industry has basically been non existent and you couldn't pay someone to get on a cruise ship. Airlines are barely surviving. As this happened businesses turned to their insurance companies for coverage.

However many were surprised to find out that most insurance policies don 't cover this type of disaster. Government put pressure on insurance companies to provide coverage. However its difficult to provide insurance coverage when a premium was not charged for a risk.

As these businesses started to close they started to cancel their policies. This started to impact insurance companies as businesses were no longer needing insurance for a closed business. While this was a minimum impact on the bottom line when you add the next two things it creates a major problem.

 

                                 Social Injustice

2020 has seen the rise of social injustice and unrest across many parts of the country. Portland Oregon has seen many businesses burned and even Atlanta Georgia saw businesses damaged after a man was killed in an altercation with police. 2020 was problem the first time in 50 years that you have seen moratoriums put in place by insurance companies for selling business insurance.

At one point Target had to close its Minnesota stores because of looting.

 

                                                Hurricane Season

Now onto the third maybe the biggest thing to impact insurance companies in 2020. The 2020 hurricane season was predicted to be busy but no one predicted it to be this busy. In fact NOAA has had to make several adjustments to their hurricane predictions for 2020.

As we write this blog at the end of October in 2020 we have had 27 named storms, 11 hurricanes have made landfall in the U.S. and 5 hurricanes have made landfall in Louisiana.

This ties the record for most landfalls in a year within one state. Florida set the same record in 2005.

Hurricane Sally, Marco, and Delta have all created major damage in the gulf states. In fact Delta and Sally made landfall only 15 miles a part.

Like most people in 2020 insurance companies are eating through their reserves fairly quickly and they are discovering that many of their risk models were off.

So what does this mean for coastal states like Florida, Alabama, Mississippi, Louisiana, and Texas.

In Mississippi we are already seeing some private carriers halt business completely and we have seen this in Louisiana for a few years. Texas has also had this issue since Harvey.

We could see this pattern start to work its way towards Florida and Alabama.

Does this mean flood insurance will not be available?

No

The National Flood Insurance Program is available for properties where communities participate. It just means that the private flood insurance options could be limited for a while.

This will be a crucial time for you to work with an insurance agency that can defend your risk?

What does this mean?

This means being able to show how a risk may have changed because of mitigation efforts even if it has flooded. We see customers rejected everyday because someone did not defend their property correctly.

If you have questions about what your flood insurance are in these areas then click here. You can also check out our

YouTube Channel

where we do daily flood education videos. You can also check out our Podcast

Remember we have an educational background in flood mitigation. This means we are here to help you understand your flood risks, flood insurance, and mitigating your property.

 

Contact Us

Chris Greene

Author

Chris Greene

President of The Flood Insurance Guru
M.S. in Emergency Management with a focus in Flood Mitigation
flood@communityfirstagency.com

I just got back from my first camping trip with my family. We recently decided to get a camper to make as many memories with our 4 year old daughter Lydia as possible.

I travel the country shooting our flood education videos and this was a way for them to come along.

My dad was an eagle scout but I only had the opportunity to go camping as a boy scout once when I was a child. I found it funny as a kid my dad was the only one wearing khakis and a dress shirt on the camping trip. Boy was he along way removed from his eagle scout days.

Geeky hipster holding an abacus against desk

Being a physicist he didn't do much with the outdoors as an adult. By the time I came along my grandparents were older and I didn't get the same experiences with the outdoors like my brothers did. I remember as kids they would go off to camp for a week. I looked forward to that but when it was my turn the camp had closed.

So as you can imagine this camping trip was filled with lots of learning experiences for me and my wife. If it wasn't for my experienced brother in law Jason it probably would have been an epic failure.

It was my first time sleeping in a camper, it was my first time learning how to manage the waste tanks. That was a learning experience.

20200531_131208

It was even my first time using a bath house. 

Old barn and outhouse at Millbrook Village, at Delaware Water Gap National Recreational Area, New Jersey.

My wife said do you have shower shoes? 

I said what are shower shoes?

Confused. Portrait young man thinking daydreaming trying to remember something scratching head isolated white background. Negative emotion facial expressions feelings. Short term memory loss, failure

She said you can't walk in the bath house bare footed. Many times we don't know the answer to the question until it's time for the question. As you can imagine I had lots of questions when it came to camping.

Like many people who have a question I went to Youtube to get my camping questions answered.

Getting camping questions answered can be much easier than getting flood insurance questions answered sometimes.

So today's question has probably been asked 100 times to me over the years.

Can You Buy Flood Insurance During Hurricane Season?

So can you?

You can buy flood insurance during any season. You might be limited to what options are available. Let's look at the National Flood Insurance Program first. The National Flood Insurance Program generally does not limit you to when you can buy flood insurance. They do put a 30 day wait period on a policy being effective unless it is for a map change or loan closing.

So what about private flood insurance?

You can still buy private flood insurance during hurricane season, but they may have more limitations. Private flood insurance carriers will put moratoriums in place many times when there is a named storm in the Gulf or Atlantic ocean. Generally they will remove this moratorium once the storm has passed and any flooding has stopped.

It's important to remember that like the National Flood Insurance Program private flood also has a wait period. This wait period generally ranged from 5 to 15 days unless its for a loan closing.

Even though you may have a loan closing a moratorium could still stop you from getting flood insurance in place.

So its important that you understand what options are available, what the wait periods are, and that you can get flood insurance during hurricane season.

So if you have questions about getting flood insurance during hurricane season then make sure to visit our website. You can also check out our YouTube channel or Facebook page where we do daily flood education videos.

 

Chris Greene

Author

Chris Greene

President of The Flood Insurance Guru
M.S. in Emergency Management with a focus in Flood Mitigation
flood@communityfirstagency.com

I have spent the last 4 days camping with my family. My daughter is approaching her 5th birthday and she had the time of her life. While I was away it allowed me to reset a little bit. 101409834_10163441922635368_6499435779809345536_n

When I do this I like to sit back and think about things and even do a little bit of research.

As I am doing this I notice a lot kids riding bikes around without parents. I guess the parents assume they are in a campground so the kids are safe. I probably had two or three kids jump out in front of me when I was driving.

This got me thinking about hurricane seasons we had a few years ago. We went a good while without a major hurricane making landfall. When one did it it was bad. It very well could have been because we felt comfortable and let our guard down.

The upcoming hurricane season starts today June 1st.

It looks as though there will be a 3rd named storm this week which is a lot this early in the season.

In fact the last time it happened was 2017 when the United States saw some of its most devastating hurricanes in history.

Let's take a look at the 2017 hurricane season. That year there were 17 named storms, 10 of which were major hurricanes, and 6 major hurricanes.

Harvey hit Houston Texas becoming the most destructive hurricane in local history there.

So does 2020 spell disaster as well?

Maybe NOAA is predicted 13 to 19 named storms for 2020. 6 to 10 of these will be hurricanes and 3 are expected to be major hurricanes.

 

2017 Hurricane Season  # of named storms # of Hurricanes # of Major Hurricanes
  17 10 6
2020 Hurricane Season Prediction 13 to 19 6 to 10 3

 

It could you see just like 2017 the 2020 season has been active even before the season began as a result of the jet stream dipping down to the South. This is helping tropical systems develop much quicker. 2017 had its first storm develop in April which is extremely early. 2017 was also the first time in 12 years that a major hurricane made landfall in the United States.

Not having a major hurricane make landfall for 12 years can lead a lot of people to not adequately prepare. Like they say all wounds heal with time and sometimes we forget how abad that wound hurt.

Hopefully one thing that we can learn from the 2017 season is always being prepared and understand the threat of inland flooding hurricanes can create.

Having the right flood insurance in place is very important. Its also important to understand that everyone is at risk of flooding whether its a low, moderate, or high risk.

If you have further questions about hurricane season or how to obtain flood insurance make sure to click here.

You can also check out our YouTube channel where we do daily education videos or even listen to our podcast.

Remember we have an educational background in flood mitigation so we can help you understand your flood insurance, flood risks, and mitigating your property against flooding.

 

Contact Us

Chris Greene

Author

Chris Greene

President of The Flood Insurance Guru
M.S. in Emergency Management with a focus in Flood Mitigation
flood@communityfirstagency.com

Hurricane season starts June 1st each year. NOAA has already predicted it to be a busy hurricane season. However we have already seen our 2nd named storm in the Atlantic and it's not even hurricane season yet.

Are you Ready? written on the road

FEMA is already strapped with the Covid 19 response and the recent flooding event in Midland Michigan.

So being prepared has never been more important.

Tropical storm Bertha caused flooding in Miami over memorial day weekend before moving up the coast and making landfall in South Carolina on Wednesday May 27th.

Thankfully it's a tropical storm so high winds are not that much of a concern. However with so many storms the concern is rainfall. This storm has already caused coastal flooding in South Carolina.

The storm is predicted to move up into North Carolina and Virginia. It's predicted to slow down and cause flooding in the Appalachian mountains.

So what can you do to prepare for the 2020 hurricane season?

Having your flood insurance in place before hurricane season is very important. Most people inland usually don't take hurricane season seriously. However as years past has shown us inland flooding from hurricane season is a major threat and might be a higher concern than some of the coastal flooding.

When these storms hit the coast they are still moving at a decent speed but once they move inland they tend to stall out dumping lots of rain.

As hurricane season approaches in the next couple of days its important to understand a few things about flood insurance.

  1. Wait period

  2. Payment options

Most flood insurance has a wait period unless its for a loan closing. Let's look at the National Flood Insurance Program first. This program will have a 30 day wait period which means if you start on June 1st it really would not go into effect until June 3oth.

Now lets look at some of the wait periods in the private flood insurance market. The average wait period for private flood insurance usually ranges from 10-15 days unless its for a loan closing.

There are a few options with no wait period but it is extremely rare.

Now that you have an idea of the wait period what about paying for the flood policy?

When it comes to the National Flood Insurance Program flood insurance has to be paid in full for the year. This is also generally the case with private flood insurance policies as well. Every once in a while you will find a policy that can do quarterly payments but it's pretty rare.

Now that you understand what the wait periods and payment options are it's time to make sure you are prepared for hurricane season.

If you want to see what your flood insurance options are then click here.

If you want to learn more about flood insurance then make sure to check out our YouTube channel where we daily flood education videos. You can also check out our podcast.

Remember we have an educational background in flood mitigation so we are here to help you understand your flood risks, flood insurance, and mitigating your property against flooding.

 

Contact Us

Chris Greene

Author

Chris Greene

President of The Flood Insurance Guru
M.S. in Emergency Management with a focus in Flood Mitigation
flood@communityfirstagency.com