The Atlanta Journal-Constitution
Some hard lessons learned from Hurricane Isaac’s visit
Even a relatively weak Category 1 storm can create crises. Many homeowners’ insurance policies don’t cover flood damage.
Hurricane Isaac managed to get the attention of residents in Florida, Georgia, Alabama, Mississippi and Louisiana as it crossed the Gulf.
The Midwest also was on alert for heavy rain as Isaac moved north and became a tropical depression.
Here is what homeowners, renters, vehicle owners and boat owners face as a result of “only” a Category 1 storm: Some southern Louisiana homeowners saw water up to their roof lines. Reporters were standing in waist-deep water to do their video reports. Other reporters were hardly able to keep their balance at the height of the hurricane winds.
While evacuations were ordered on the Gulf Coast, many didn’t go, as usual, which often creates problems for law enforcement and emergency responders, not to mention the danger those individuals and their families may encounter when conditions are so bad.
As the storm moved through, the focus shifted to dealing with property and vehicle damage from winds, flooding and related issues. Law enforcement, emergency services, insurers and the not-so-thoughtful rip-off artists charging exorbitant fees for tree removal, roof repair and general contracting restoration work were on the scene.
According to the Insurance Information Institute, wind damage from tropical storms and hurricanes is covered under standard homeowners and renters insurance policies. This includes damage to both the structure of the home and personal possessions. Ninety-seven percent of homeowners have homeowners insurance but only 29 percent of renters have renters insurance. Gulf Coast residents likely have higher homeowner deductibles due to the increased risk of such storms.
Flood damage is generally not covered under standard homeowners and renters insurance policies. A separate flood insurance policy can cover losses resulting from heavy or prolonged rain, coastal storm surge and failure of levees or dams, the Insurance Information Institute notes. The National Flood Insurance Program provides coverage for up to $250,000 for the home’s structure and $100,000 for personal possessions. Excess flood insurance is also available from some private insurers if additional insurance protection is needed.
While flood insurance for homeowners and renters is avail- able, only 13 percent of Americans nationwide buy it, according to a survey by the Insurance Information Institute. The number of flood policies increased in Louisiana and Mississippi after 2005’s Hurricane Katrina, but declined in later years while the number of flood insurance policies rose in Alabama post-Katrina and continued to rise over the following years.
Renters often don’t know that the property owner is responsible for the building, but the renter is responsible for personal belongings and liability that may occur within the unit (that includes theft). Renters insurance is inexpensive compared to the owner’s insurance.
Damage to cars from wind and flooding is covered under the optional comprehensive part of an auto insurance policy. More than 75 percent of all Americans choose to buy comprehensive auto insurance coverage.
As in all disasters, the financial impact to property and individuals will be the next important issue on which to focus.