Hurricane InsurancePresented by Group 3

Group 3 MemberMa Hnin Thiri Chaw (Roll no. 4) { Leader }Ma May Zin Htet (Roll no. 14)Ma Mya Myin Kyi (Roll no. 25)Ma May Myo Mon (Roll no. 36)Ma May Thu Naing (Roll no. 45)Mg Thein Oo (Roll no. 53)Ma Zin Hnin Phyu (Roll no. 57)Ma Khine Hnin Hnin Thu (Roll no. 71)Ma Yin Mar Naing Win (Roll no. 81) Ma Ei Ei Phyo Zaw (Roll no. 90)

ContentWhat is hurricane?Type of Hurricane5 categories of HurricaneMitigationInsurance Review and Hurricane InsuranceInsurance CoveragePerilHow much insurance is enough? How to file an insurance claim for hurricane damage?

What is Hurricane?• A hurricane is a type of tropical cyclone, the general

term for all circulating weather systems over tropical waters (counterclockwise in the Northern Hemisphere).

Type of HurricaneType Description

Tropical DepressionAn organized system of clouds and thunderstorms with a defined circulation and maximum sustained winds of 38 mph (33 knots) or less.

Tropical Storm An organized system of strong thunderstorms with a defined circulation and maximum sustained winds of 39 to 73 mph (34-63 knots).

Hurricane

An intense tropical weather system with a well-defined circulation and maximum sustained winds of 74 mph (64 knots) or higher. In the western Pacific, hurricanes are called “typhoons,” and similar storms in the Indian Ocean are called “cyclones.”

Category 1: Minimal Damage Winds: 74-95 mphCategory 2: Moderate Damage Winds: 96-110 mph

Category 3: Extensive Damage Winds: 111-130 mphCategory 4: Extreme Damage Winds: 131-155 mph

Category 5: Catastrophic Damage Winds: More than 155 mph

Mitigation• Mitigation is an action to avoid loss of life and

property and it may reduce your risk of becoming a disaster victim.

• Those things are called mitigation.

• There are many low-cost actions you can take to protect yourself, your home, or your busines from losses. – Protection from wind– Protection from flood

Protection From Wind• Analyze structural strengths and weaknesses of your

home.• Retrofit your existing roof.• Secure all outdoor furniture to prevent it from blowing

away. • Install plywood at least 1/2'' thick or build storm

shutters to protect windows. • Install braces to give additional support to garage

doors.

Protection From Flooding• Buy flood insurance. To obtain information on flood

insurance, contact your local insurance agent.

• Move valuables and appliances out of the basement. • Have the main breaker or fuse box and utility

meters elevated above expected flood levels.

• Heed flood warnings by leaving early and removing belongings that may be damaged in the event of a flood.

Insurance ReviewInsurance Service recommends the following items for

your hurricane preparation list:

• Review insurance coverage with your agent. Know your policy’s deductibles and how your policy handles property that is damaged or destroyed.

• Ask your agent about ways to reduce chances of loss or damage, such as installing hurricane shutters.

• Keep your household inventory up to date and store it in a safe place away your home.

• Coastal residents may need several insurance policies to protect their homes and property from all types of damage.

Insurance Review

• Purchase flood insurance. Flood insurance is not part of most hurricane and home owner’s policies.

• You cannot buy hurricane insurance after a hurricane watch or warning has been issued.

• If you evacuate, carry your agent’s name and phone number, policy number and insurance company’s claims phone number with you.

Hurricane Insurance• provide coverage for losses resulting from

hurricanes

• except for flood loss associated with the hurricane.

• flood and hurricane policy are very different insurance entities

• need to purchase both insurances to become fully protected.

Hurricane Insurance• Often limited to wind damages and does not

include flooding.

• Depending on the policy, hurricane insurance will cover resulting– fire or vandalism, – hurricane clean up such as debris removal

and repairs, – cash or replacement value of damaged

property.

• Additional Living Expenses (ALE) may also be provided should it become necessary for you to stay at a hotel if your home becomes unliveable.

Insurance CoverageWhat is a Covered Property?

The four separate categories for your home, as defined by insurance companies, are:

• 1. Dwelling – the structure of the house

• 2. Other Structures –structures that are separate from the house, such as a tool shed or detached garage.

Insurance Coverage• 3. Personal Property includes furniture,

appliances and clothing. Not all personal property is covered for example , money, jewelry and firearms.

• 4. Loss of Use – When a loss occurs due to a covered peril and the dwelling becomes uninhabitable, the cost of additional living expenses is covered.

“Open Perils” and “Named Perils” Coverage• A peril is a cause of loss, such as flood or wind.

• Coverage can be provided on an “all perils” basis, or a “named perils” basis.

• Named Perils policies list exactly what is covered by the policy.

• Open Perils (or All Perils) policies will list what is excluded from coverage.

• Named Perils policies are generally more restrictive.

Package Versus Peril-Specific Coverage• A package policy provides coverage for multiple,

but usually not all perils.

• A homeowners policy is a package policy typically providing coverage for the perils of fire, lightning, and extended coverage. Extended coverage includes coverage for the perils of windstorm, hail, explosion, riot, civil commotion, aircraft, vehicles, smoke, vandalism, malicious mischief, theft, and breakage of glass.

• Some policies, such as earthquake or flood policies, provide coverage for specific perils that are often excluded in package policies. Damages caused by wind as a result of an hurricane may be covered by a standard hurricane policy.

Personal Property Coverage Choices• Depending on type of policy, the different personal

property coverage options could be:

1. Replacement Cost Coverage

2. Actual Cash Value

How Much Insurance Is Enough?

Depending on the type of policy, the different dwelling coverage options could be:

• 1. Replacement Cost Coverage • 2. Actual Cash Value• 3. Special Payment - loss is paid before dwelling

is repaired, rebuilt or replaced.• 4. Functional Replacement Cost or Market

Value Coverage - repairs are made using common, modern materials and methods without deduction for depreciation unless repairs are not made, and if a total loss, the payment amount will be the market value of the home.

• 5. Stated Value - a selected value is established by the insured, and this value is the limit of liability.

What Does Insurance-to-Value Ratio Mean?• This is the relationship of the amount of insurance

purchased to the replacement value of the property.

• It is important to have an accurate assessment of the replacement cost value of your home.

• If you do not, and then have a loss, the cost to actually replace your home may be more than your insurance policy will provide.

Ways You May Be Able To Affect Your Premium• A deductible is the amount of loss paid by the

policyholder before any loss is paid by the insurer. The larger the deductible, the lower the premium.

• A policy may have different deductibles based on the peril of the loss.

• Two type of deductible-– 1.dollar deductable– 2. percentage deductable

• One of the more common percentage deductibles is the hurricane percentage deductible, which applies to damage solely from hurricanes.

• Therefore a policyholder may have a $1,000 deductible for fire losses, but a 2% deductible for hurricane losses. Hurricane percentage deductibles can be very significant. ($100,000,000 loss will occur, the policy holder will not pay if the loss is under $2,000,000)

Well-known and destructive storms

• Hurricane Katrina in 2005• Hurricane Charley in 2004• Hurricane Andrew in 1992.

• 2004-2005 ( two consecutive severe storm season).

• 2006 and 2007 seasons were relatively quiet and the lack of hurricanes provided a welcome but short-term respite

• Losses from the 2008 Gulf Coast hurricanes were significant (estimated to be approximately $11 billion)

How To File An Insurance ClaimFor Hurricane Damage1. Do no harm.

2. Contact your insurer.

3. Document losses.

4. Minimize damage.

5. Arrange for repairs.

6. Keep receipts.

1.Do not harm• One of the few hurricane-related deaths so far involved

someone who fell off a ladder.

• Don’t become a statistic by going out on the roof orwading through knee-high water in your basement

(where you could get shocked by electrical current).

• Instead call for emergency help from your police or fire department.

2. Contact your insurer.

• Weather forecasters gave insurance companies enough notice that many already have systems in place for helping customers with claims.

3. Document losses.• Take pictures and make notes briefly describing what

happened.

4. Minimize damage.• For most people this will mean starting to dry things

out.• Spread wet items on absorbent paper towels or on

wire racks if you have them.• Unpack the contents of cartons that got wet.• Use box fans to promote circulation and combat

mildew.• If you have lost power, keep the refrigerator door

closed to reduce the chance that food will spoil.

5. Arrange for repairs.• The sequence of events—whether you contact your

insurance company first, or immediately find someone to fix the damage–will obviously depend on whether you’re dealing with an emergency.

• Your insurer may be able to offer a referral for tree removal, carpet cleaning or painting restoration.

6. Keep receipts.• Most companies won’t require you to show what you

initially paid for items that have been damaged.

• But they do want to know what you spent as a result of the loss. So if your policy covers evacuation expenses, like hotel, transportation, meals and clothing expenses, keep detailed records of what you shelled out.

Thank you!