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More than 5.6 million people hold flood
insurance policies in over 21,800 communities
across the country |
Floods. Tornadoes.
Hurricanes. Fire. Hail. Damages
and spending on weather disasters and a changing climate have been on the rise
since 1980 and are projected to increase, in part due to climate change. We
Coloradans experienced the catastrophic effects that severe weather can have on
our homes, business, and communities last September when we received an average
year’s worth of rain in seven short days. The cleanup effort in the aftermath
of the flood described as “biblical” by the National Weather Service is just
the beginning of costs associated with such severe weather.
Are you fully covered?
Review your policy and make sure it protects you in case Mother Nature decides
to impress us again in 2014.
Statistics show
the reality that we’re seeing a change in weather patterns. Experts predict
more severe weather this year than last, indicating the possibility of higher
costs to individuals and communities nationwide, as weather-related claims have
risen steadily over the last several years.
Global
reinsurance firm, Munich Re, released
a report focusing on what it says is a decades-long, increasingly severe series
of such events and the costlier insured losses that have accompanied them. They
found
that the number of weather-related loss events in North America over the last
three decades has "nearly quintupled," experiencing the largest
increases in weather-related losses of any country. From tornadoes to
hurricanes to wildfires, the continent is vulnerable to “every type of
hazardous weather peril,” especially because there are no long mountain chains
crossing its middle that might break up hot and cold air.
“When global warming combines with
natural weather cycles,” the report states, “the risk of severe weather is
intensified, and these factors will result in even larger loss costs from
natural peril events than what we have seen so far.”
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Experts predict extreme weather patterns to
increase in 2014 |
The severe flooding
and fires that affected many of our communities, families, and friends in
Colorado in 2013 serve as a reminder as
to why it’s important to make sure our homes, businesses, cars, and medical care are properly covered in case of catastrophe. We can look at what's
happened and use that as a bit of a guide going forward. We should prepare for
the weather risk changes that lie ahead.
Colorado was also
struck by hailstorms last summer. Almost 70,000 total claims were filed due to
the disaster, and nearly half of those claims were for vehicles. The Rocky
Mountain Insurance Information Association (RMIIA) estimated that more than
$85 million of the damages from those storms were vehicle-related.
Hail claims are
an example of optional coverage that compensates policyholders for
weather-related damage. Statistics show that about 75 percent of all U.S.
drivers add comprehensive coverage to a policy. A policyholder may consider
skipping a comprehensive policy in order to get a cheaper quote, but in light
of recent reports on increasingly severe weather across the U.S., choosing
comprehensive coverage is likely a smart move.
In terms of optional coverage,
comprehensive is one of the last you should give up. It only amounts to a small portion of your
auto insurance bill, but covers a lot of events, especially weather that can be
unpredictable.
It’s smart to be
proactive with your agent to make sure you are prepared for weather-related problems
that may arise. Review catastrophes from the past year, and consider how
preparedness would have helped give you peace of mind. To us at Pure Risk
Solutions, that means preparing for the coming year, protecting our families,
making sure the things we love most – our families, our businesses, our homes, our
dreams – are well cared for and protected from weather and other things that
are out of our control.
Are your home
and car fully covered in case of more extreme weather this summer? For a review
of your policy, call or visit us online.
John
Jacquat: (303) 834-1001
