Summer Means Wild Weather in Some Western States

Summer is here and with it comes unstable weather conditions that can cause problems for consumers and agents alike in some parts of the United States. As if ushering in the season, insurers and insurance organizations are busy issuing reminders to agents on how they can help their insureds protect themselves and their property from nature’s annual freak show.

Floods and hailstorms
An Insurance Information Institute (I.I.I.) consumer advisory recommends consumers review policies to make sure that property and belongings are adequately insured from natural disasters such as hail storms, floods and even tornadoes in some areas.

The I.I.I. noted that according to Insurance Services Office Inc. (ISO) figures, nearly $13 billion was paid last year to victims of natural disasters in 39 states to rebuild their homes and businesses.

Standard homeowners insurance policies cover damage from most natural disasters such as windstorms, hurricanes, tornadoes, lightening and hail, in addition to fire and other perils. However, homeowners policies do not cover damage from two major types of natural disasters: flood and earthquake, which require the purchase of separate policies for coverage.

Things to consider when reviewing a policy to determine if coverage is adequate include any remodeling or new additions to the home, as well as rising construction costs. The I.I.I. also reminded consumers to inventory personal items in the home, such as furniture, clothing, electronic equipment and jewelry. Such an inventory will help in determining the correct amount of insurance needed. It also helps settle an insurance claim faster and can be used to verify un-reimbursed losses on an income tax return.

Since homeowners policies don’t cover flooding, property located in a Special Flood Hazard Area needs flood insurance. Lenders on such property usually require it. Flood insurance covers direct physical losses by flood and losses resulting from flood-related erosion caused by waves or currents of water exceeding anticipated cyclical levels and accompanying a severe storm, flash flood, abnormal tide surge or a similar situation that results in flooding.

Mudflows are covered under the National Flood Insurance Program; however, landslides are not.

Coverage for the structure and contents of the home are sold separately. Buildings and structures are covered for replacement cost but content coverage is available on an actual cash value basis only. There may also be limits on coverage for furniture and other possessions stored in your basement.

The I.I.I. said that if a home is at risk for flooding, coverage should be purchased as soon as possible as there is a 30-day waiting period before coverage takes effect. The policy is provided by the Federal Flood Insurance Program and is only available where the local government has adopted adequate flood plain management regulations.

Even properties not situated in a flood-prone area may still need flood insurance to protect the home against an overflowing creek, or water running down a steep hill. In addition, a consumer may want to consider sewer back-up coverage in case floodwaters enter the sewer system, back up and enter the home.

Cars and hail don’t mix
From Progressive Insurance: “Imagine a baseball dropped from an airplane flying at 30,000 feet; now, imagine that baseball reaching speeds of 120 mph as it falls to the ground and lands on a car! For drivers in and around Hail Alley, a string of states that includes Arkansas, Colorado, Kansas, Nebraska, Oklahoma, Texas and Wyoming, the possibility of baseball-sized hail damaging their car is not unimaginable—it’s a reality.”

According to Progressive, the cost of hail damage to property in the United States reaches $1 billion yearly.

“Specifically in the Hail Alley states, agents can help consumers better understand the coverage and cost effective repair options that will protect them in the event of a hailstorm,” Tom Kaschalk, claims manager with the Progressive group of insurance companies, stated.

He added that agents should let their customers know “that the average cost to repair a hail-damaged vehicle over the past five years was more than $1,500.”

By reviewing the repair options available, agents can help their customers save money and keep the cost of auto insurance down for everyone. Repair technicians often recommend a repair process called paintless dent removal (PDR) to restore hail-damaged vehicles to their pre-accident condition.

“Paintless dent removal is convenient, quick, less expensive and maintains the factory finish on the car,” Kaschalk said. “We know the importance of providing fast, quality repairs—our driving goal is to settle each claim as accurately, quickly and fairly as possible.”

PDR involves using specially molded metal tools on the underside of a damaged part to repair dents without disturbing the car’s factory finish. In fact, this method is often used by car manufacturers and dealers to repair new vehicles and will not invalidate paint warranties. The Progressive bulletin pointed out, however, that PDR is not for all types of hail damage. For instance, it is not appropriate if dents are too large or frequent, or if the paint finish is damaged. Prior body damage that required plastic fillers or bonding may also make PDR difficult.

Progressive recommended that agents encourage customers who have experienced hailstorm damage to take the following steps:

• Call their insurance company immediately to report the damage.

• Prevent further damage. Cover any broken windows to protect the car’s interior from rain damage. Carefully remove the glass to prevent cuts and damage to the upholstery and carpets.

• Discuss the repair with the agent, insurance company and/or body shop to determine whether PDR is appropriate or if another restoration method should be used. Hail damage to sheet metal may need to be hammered and painted.

• Find a reputable facility. The insurance company may be able to recommend a provider.

• Find out how long the repair will take. Because it is so efficient and effective, PDR repairs may be completed within a day. However, repairs may take longer if a large number of cars were damaged in the same hailstorm.

• Ask the repair shop if it guarantees its work. Know how the body shop will handle any problems remaining with the vehicle after the repair. A flaw in the vehicle’s repair should be fixed at no additional charge. Get guarantee and contact information in writing. Ask the insurance company if it guarantees the work of its preferred body shops.

• Make sure the repairs are satisfactory. Before accepting the vehicle, look at the surface under fluorescent lighting and from several angles so that all the details can be seen. Check for any remaining dents before taking the vehicle home.

Topics Catastrophe Auto Agencies Flood Property