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Following a hurricane or other disaster, getting back to normal can take some time. To assist in the recovery process, the Triple-I has compiled useful information around post-disaster safety and insurance coverage questions, with detailed guidance on how to file a claim. In addition, resources specific to Alabama, Florida, Louisiana, Mississippi and Texas affected by recent storms are included.

In focus: 10/30/2020

After Hurricane Zeta slammed into Louisiana October 28 at least six were dead and millions were without power. The storm left shattered buildings and thousands of downed trees from the Gulf Coast to Georgia.

Safety and resources for recovery

Following a hurricane, new perils brought by the storm can pose risks. And if you have evacuated, it might not be safe to go back home. The following articles provide information and guidance to keep you and your loved ones safe in the aftermath.

Articles:

After a hurricane, beware of the dangers that remain

When disaster strikes: Preparation, response and recovery

Health safety following a flood

Recovering from a flood

Catastrophe-related fraud

What does insurance cover?

In the aftermath of a hurricane or natural disaster, policyholders may have questions about the insurance process, including what is covered and what isn’t. Here are some answers to many of these common questions about home, auto, flood and other coverages.

Articles:

Hurricane insurance FAQ

What is covered by standard homeowners insurance?

Renters insurance

Co-op or condo insurance

Mobile home insurance

Basic auto insurance

Boat insurance

How does flood insurance work?

Business insurance and flooding: Q&A

Environmental liability insurance

Spoiled food

Claims

After a disaster, you want to get back to normal as soon as possible, and your insurance company wants to help. You may get multiple checks from your insurer as you make temporary repairs, permanent repairs and replace damaged belongings. Here’s what you need to know about claims payments, including how to file a claim, what to expect during the process, and detailed explanations of what hurricane deductibles are, and how they work.

Articles:

Understanding the insurance claims payment process

How to file a homeowners claim

Hurricane deductible backgrounder

Understanding your insurance deductibles

Infographic: Hurricane deductibles

Ordered to evacuate due to hurricane Laura? You might have insurance coverage for additional living expenses

How is the settlement amount determined?

Infographic: How to file a flood insurance claim: Tips from FEMA

What is a public adjuster?

Many national organizations and ones in your state may offer resources for recovery that are helpful to you. The following is a general list, followed by specific resources for those affected by Hurricane Laura in Louisiana and Texas.

Frequently asked questions about FEMA disaster assistance

DisasterAssistance.gov

FEMA Helpline: 1-800- FEMA (1-800-621-3362)

TTY 1-800-462-7585

711 or Video Relay Service (VRS) 1-800-621-3362

SBA Disaster Loans & Grants

Institute for Business & Home Safety

Red Cross: Hurricane safety checklist

NFIP: Floodsmart.gov

Courtesy of iii.org

Covid-19

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Before you consider renting out your home, your guest room—or even your couch—first contact your insurance professional so you fully understand the financial risks and can take the proper precautions. Here’s some general information to jumpstart your insurance conversation.

If you are considering renting out your home, your guest room or even your couch your first step should be to contact your insurance professional. Peer-to-peer home sharing opportunities such as Airbnb can be a great way to bring in extra money and are increasingly popular; however, they can also leave you financially vulnerable. If your renter starts a fire and damages your property or is hurt while renting your home, will you be protected?

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The western U.S. wildfires and this year’s active hurricane season have highlighted for vehicle owners the importance of having optional comprehensive auto insurance coverage, according to the Insurance Information Institute (Triple-I).

“Comprehensive provides coverage for fire and flood-damaged vehicles. Yet it only accounts for about 16 cents of every dollar a driver pays for auto insurance,” said Scott Holeman, Director, Media Relations, Triple-I. “Consumers need to be cost-conscious when shopping for any insurance product, but comprehensive coverage just makes financial sense, especially if you live in an area where either wildfires or floods are a threat.”

Every U.S. state except New Hampshire requires its drivers to purchase liability insurance to drive legally. Comprehensive and collision coverage are optional coverages nationwide. Nearly four out of five drivers opted to purchase comprehensive (78 percent) and collision (74 percent) coverage in 2017, according to a Triple-I analysis of National Association of Insurance Commissioners (NAIC) data.

The typical U.S. driver paid just under $160 a year for comprehensive coverage in 2017. The total average auto insurance expenditure in that same year was $1,004.

Beyond covering fire and flood-damaged vehicles, comprehensive also pays either to repair or replace a vehicle damaged from falling objects, an explosion, an earthquake, a windstorm, hail, theft, vandalism, riot, or contact with animals such as birds or deer. In addition, comprehensive usually covers windshield replacement. Comprehensive insurance is usually sold with a separate deductible, although some auto insurers offer glass protection without a deductible.

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Many businesses—especially small businesses with fewer employees—depend on a single person or a few key people for their success. If a key person becomes unable to work or dies, the business might lose valuable accounts or be temporarily unable to operate, resulting in lost revenue.

The loss of an important employee can hurt the morale of a business, but the financial impact can be mitigated if a business purchases key person insurance. This type of coverage can enable a business to continue paying its bills and fund the search for a new employee. In unfortunate instances where a business cannot survive without the key employee, the funds from key person insurance can be used to pay severance to employees, distribute funds to investors and close the business in an orderly manner.

Key person insurance is usually owned by the business, which pays the premiums. This coverage is also a requirement of most banks and lending institutions when applying for financing or credit.

Who qualifies as a “key person”?

There are no hard-and-fast rules for identifying key persons in your business. Generally, anyone who directly contributes to a company’s bottom line or is fundamental to its operations might be considered a key person. Examples include:

• C-Suite Executives—such as a CEO or COO.
• Leading sales personnel.
• Heads of product development.
• Engineers or other difficult-to-replace personnel.

Types of key person insurance

Key person insurance comes in the following two forms:

• Key Person Life Insurance—This type of coverage differs from regular life insurance in that it specifically covers individuals in a business who are crucial to company operations. It provides the business with an infusion of cash if an insured key employee dies, regardless of cause or place of death. These funds can help compensate for revenue lost as a result of the death, as well as pay off debts, buy out surviving shareholders’ interest from heirs and finance the costs of a new employee search or training programs. Key person life insurance can be purchased as term insurance lasting for a defined period of time or as extended universal or whole life coverage. The amount of coverage is based on a key person’s income, overall business revenue and the portion of revenue attributable to the key person.
• Key Person Disability Insurance—This policy will provide funds to a business if an insured key employee becomes disabled and unable to work—partially or entirely. While standard disability insurance covers an employee’s lost salary and medical expenses, a key person disability policy provides funding to a business to make up for lost revenue, the cost of hiring a new employee and other related expenses.

Like other disability and life insurance policies, the cost of premiums for key person insurance depends on the age, health and role of the key employee, as well as the risks the employee takes in their personal life—for example, does the CEO fly her own plane?

“First-to-die” key person coverage

A cost-effective option for buying key person insurance is for a group of executives to join together on a “first-to-die” policy that insures just the first of the group who passes away. Once the policy is used to cover the loss of the first person to die, another member of the group becomes eligible for coverage. Thus, the key person insurance continues for the new members of the leadership team, but premiums reflect the fact that only one life is being covered at a time.

This type of insurance can be a useful tool when it comes to succession planning for your business—and having a succession plan is crucial to ensure the successful transfer of your company or business interests.

Your insurance professional can provide guidance on options and costs of individual and first-to-die key person coverage.