Once again we saw another major hurricane pass by Florida last week and our hearts go out to our neighbors in Louisiana suffering from Hurricane Laura’s destruction. Our time may be coming though, as Colorado State University has put Florida’s odds of a hurricane landfall this season at 68% versus the historical 51% probability. NOAA and others agree that this is, and will continue to be, a much more active hurricane season than years past.
Complicating matters is the coronavirus pandemic, not just in terms of how to handle necessary evacuations while avoiding contagious large group shelter situations, but also in terms of handling insurance claims. AIR Worldwide is out with a new study, How COVID-19 May Impact Loss Inflation in Florida Construction if a Hurricane Makes Landfall. It’s an incredibly scholarly and brilliantly written analysis. The bottom line: while there’s no construction cost inflation presently, we’re also in the realm of the unknown with no prior experience in a pandemic. Another good read is the PCS white paper Hurricane Season: How COVID-19 Could Impact Catastrophe Claim-handling. We share both here to help you refine your claims and operations plans as we enter the heart of the hurricane season tomorrow through mid-October.
In the recent Demotech Storm Season webinar, we heard why Florida’s homeowners insurance claims environment is so challenging. In great part, it’s due to larger lawsuits and protracted litigation. We heard from both defense and plaintiff counsel on just why that is. (If you missed the webinar, you can view it here.) As most of you know, so much of the market is changing with property insurance companies shrinking their footprints and solicitors going door to door encouraging claims, many of which shouldn’t be claims but instead are normal wear and tear and home maintenance. What a difference a decade makes when the days of replacing a roof as a good responsible way to maintain a home is now an insurance claim. This Forbes article from last week provides good post-hurricane advice that you can share now – pre-hurricane – with your valued clients and colleagues: Don’t Let Storm Chasing Crooks Fool You With Roof Repair Scams.
Just like the old expression “there’s no free lunch” because ultimately someone is paying for it, there should be “no free roof” either, absent a legitimate covered event and claim!
LMA Newsletter of 8-31-20
