Dear JSA,

They are predicting 18-22 named storms for the 2020 hurricane season. My customer wants Hurricane Insurance. Is this a thing that actually exists?

Sincerely,

Blown Away

Dear Blown Away,

No. It’s not a thing that exists and it makes us bristle every time we hear that term. Perhaps they’re asking about wind coverage, but they might also be asking about flood insurance without realizing it. Many consumers think these two things go together as “hurricane insurance,” or as part of their homeowners policy.

It is a misguided belief.

Often times flood insurance is woefully overlooked. The most devastating hurricane events we’ve had in our region of the country recently weren’t costly because of wind/storm damage, but because of long term flooding. Hurricane Florence was a Category I hurricane when it made landfall in September of 2018, but the flooding was severe. 85% of the flood losses were uninsured.

Floods are now the most costly, and lethal, natural disasters in the US. 97% of the US population lives in a county that has experienced a flood disaster in the last 30 years, but only 12% of homeowners carry flood insurance. These risks are not relegated to just coastal areas. Inland flooding is more common than ever before due to aging dams and levees, urban infrastructure changes, and global warming. A mere 1-inch of water can cause $25,000 of damage to a home or business. According to FEMA, 40% of businesses damaged during a natural disaster never reopen, so it’s worth considering even for areas that aren’t considered “high risk” by the National Flood Insurance Program (NFIP).

As we see hurricane season before us, remember that the National Flood Insurance Program does have a 30-day wait period from the time of purchase. Private Flood insurance for primary or excess, like that quoted through JSA, has better lead times if you’re cutting it close. Also, if you have an application for excess wind that is not yet bound when a storm is named, the market may close and not allow you to bind. So planning ahead BEFORE hurricane season is important.