Tropical Storm Irene had shoreline residents discovering things the hard way.
For residents of Connecticut, who live along the shoreline, if previous storms had not taught them the lesson about the necessity for hurricane insurance, it was likely learned as a result of Tropical Storm Irene.
The first issue was the complexity of a large type of claim on a policy.
When a claim must be made on hurricane insurance, if it is a very large one, there are many issues that must be considered and this can make for a rather complex process. Furthermore, it is usually at this time that a homeowner discovers the loopholes in a policy which results in a lack of coverage for many outdoor items. It often takes a storm of this size to teach people the true ins and outs of their coverage.
That said, industry experts have said that hurricane insurance hasn’t changed much because of Irene.
Carriers have agreed, saying that, so far, they haven’t seen a dramatic difference in the way that hurricane insurance is viewed as a result of Irene. For this reason, they are placing additional emphasis on encouraging consumers to take the time to understand their protection against natural disasters, so that they will know what is and is not covered and how to go about making a proper claim for the fastest payment.
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At the same time, some residents along the shoreline of Connecticut have been seeing some changes to the boundaries of the high risk zones, meaning that their premiums could change.
Though most major storms of this nature will bring about sizeable changes among consumers and hurricane insurance companies alike, it doesn’t look as though this will happen because of this most recent storm. Many are hoping that the claims process will soon be overhauled, or at least ironed out, so that it is easier to understand the coverage and claims process.
Robert Hartwig, an economist from the Insurance Information Institute, has said that insurers are aware that, at some point, there will be an event such as a major storm that comes with massive damages. He said that this is one of the reasons that large changes didn’t come with Irene. It wasn’t a surprise to hurricane insurance companies. However, the premiums are on their way up, not just because of this most recent storm, but because of the fact that there have been a series of costly events, and they are beginning to take their toll.