Army National Guard photo by Capt. Martha Nigrelle
Hurricane Harvey has brought havoc and devastation to Texas and Louisiana – and insurance brokers are at the heart of the action.
At least 38 people have been confirmed dead and countless others remain trapped in their homes surrounded by flood water. The severe storm was downgraded to a tropical depression late on Wednesday night (August 30) but danger still looms as water levels remain dangerously high. Emergency services are hard at work evacuating people to safety and responding to thousands of distress calls.
According to Reuters, at least $23 billion worth of property has been damaged by flooding from Hurricane Harvey just in parts of Texas’s Harris and Galveston counties alone. The $23 billion represents market value, not storm damage, and is a mere fraction of the storm’s reach.
However, it will be some time before the full scope of the loss can be determined, according to Jim Gavin, director of insurance information services at the Independent Insurance Agents of Texas (IIAT).
In the meantime, “agents and brokers should be prepared to handle an influx of claims and have procedures in place to get those reported quickly to their insurance companies so that the claims adjustment process can begin,” said Gavin.
Learn more about flood insurance at the Future of Flood event being held in Miami, Florida on November 16. Click here for more details and to register.
This is an extremely challenging time for local insurance brokers. Gavin explained: “Many of them and their co-workers are experiencing the same losses that are affecting their customers. Electrical power and living conditions are an issue. In some areas with excessive wind damage even the basic essentials like water and food can be a challenge.
“For adjusters, they are working in areas with increased physical hazards from debris and problems navigating areas without street signs or house numbers. Agents and their co-workers probably don’t get enough credit for the effort it takes to forget about their own issues in order to help their customers.”
One major issue underlying Hurricane Harvey news is the number of victims without flood insurance. Unless flood insurance is required by a mortgage or loan agreement, it’s a voluntary purchase that “too many choose to avoid,” according to Gavin.
Insurance claims are already being filed in their thousands. There has been some speculation about a new insurance law coming into effect in Texas on Friday (September 01), with people being urged to file written notice of insurance claims before the new law makes it more difficult to sue insurers. However, Gavin called that “an unfortunate social media rumor”.
“Nothing in the claims process has changed,” he said. “Nothing in the regulatory oversight process by the Department of Insurance, or remedies available to the consumer have been reduced or eliminated by the new law. The new law only affects lawsuits filed after September 01, not claims.”
Related stories:
Here are the insurers who will face the biggest hit from Harvey
FEMA only has $7.6 billion for Harvey – and it would have to borrow $5.9 billion of that
.jpg)
