How storms in the Atlantic affect our ability to bind insurance policies.

Steve Wells touches on how named storms in the Atlantic affect our ability to bind insurance coverage.

How storms in the Atlantic affect our ability to bind insurance policies.

We’ve gotten a lot of questions about hurricanes, and a very important one is: How does a Named Storm in the Atlantic affect my ability to obtain insurance? So we thought we’d talk a bit about that in this post and video.

 

Let’s start off by talking about a few definitions.

First, “Named Storm.” What is a named storm? Well, it is a “weather-related event involving wind, that is given a name by the National Hurricane Center.
Secondly, What is the affected property? The affected property is going to fall on both the commercial insurance side and the personal insurance side, and includes physical damage done to property, equipment, autos, and others.

 

So let’s talk a little bit about what causes restrictions.

Restrictions are put into place depending on where the storm develops or exists. The insurance industry has created what we affectionately call “the Box”. (see below)

 

“The Box”. Named storms in this area will restrict our ability to obtain and “bind” insurance coverage until the storm dissipates or exits the box.

 

And depending on where the storm develops – either inside the box, or outside the box and moving in – our ability to bind new business for our clients is restricted. Also, changing existing policies is restricted. Now, these restrictions are lifted once the storm either dissipates or moves outside the box. This should not affect your existing renewal.

 

So it’s very important to pay attention to developing storms in the Atlantic Basin and understand your coverage. Should you have any questions please feel free to call us and we’ll be happy to answer any questions that you have.
For more information on being better prepared for hurricanes, contact us at 910-762-8551.

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