As this hurricane season approaches, we’re focused on helping agents across the country address these three questions:
- What should you expect this season in terms of the storm climate?
- What can you tell policyholders and prospects about last year’s hurricane season to help them prepare for this season?
- How can you retain the flood policies and commissions you added to your book after last hurricane season?
IIAT Advantage flood partner Assurant provided some insight on what to expect this upcoming hurricane season:
What to Expect This Hurricane Season
So far this year, Colorado State University predicts a slightly above-average 2018 season, citing the relatively low likelihood of a significant El Nino as a primary factor.
The CSU Tropical Meteorology Project team is predicting 14 named storms during the Atlantic hurricane season, which runs from June 1 to November 30. Of those, researchers expect seven to become hurricanes and three to reach major hurricane strength with sustained winds of 111 miles per hour or greater.
How to Help Policyholders Prepare for an Active Hurricane Season
As we prepare for the hurricane season ahead, flood insurance is critically important. Last year’s hurricane season proved that beyond a shadow of a doubt. If customers ask you about dropping their flood policies, make sure they understand that flood insurance is essential to protecting their assets. The 2017 hurricane season had a devastating impact on uninsured properties, costing a record amount.
IIAT provides a sample letter that you can use as a template to communicate with your clients. Share these facts with policyholders and prospects to help them understand the importance of flood insurance.
Protect Your Flood Book Year Round
With last year’s hurricane season almost a year behind us, the new policies you acquired last year, as well as existing policies, will be up for renewal. While we typically see many “disaster-inspired policies” drop off at first renewal, talking to your policyholders proactively can make all the difference. In addition to the stats above, make sure your policyholders know:
- All 50 states have experienced flash flooding in the last five years.
- More than 20% of flood claims come from properties outside the high-risk flood zones.
- Just a few inches of water can cause tens of thousands of dollars in damage.
- If your property is grandfathered into a lower risk zone than FEMA’s current flood map reflects, and you let your policy lapse, you could lose this benefit.
- Disaster Assistance is not free money, the most common form of assistance is a low-interest SBA loan.
- Flood insurance pays claims regardless of whether or not there is a Presidential Disaster Declaration.
- They may be able to decrease the cost of their premium while maintaining flood protection with private flood insurance.
Need additional information about Flood Markets?
Contact Polly Middlebrook at 512.493.2425