The Orlando World Center Marriott, however, wasn't taking such a lackadaisical approach. “You may be assured that we are closely monitoring [Fay's] movements, and have taken reasonable steps to ensure the safety of all our guests,” wrote the Marriott's general manager in a letter distributed to the hotel's guests. “Please be aware that there may be high winds and rain in our region, and you should take the necessary precautions if you are leaving the building in the next 24 to 48 hours.” Now that's more like it.

At press time, Tropical Storm Fay was more rain storm than hurricane, practically walking across the state at a leisurely nine miles per hour before stalling quite literally for days along the East Coast of Florida. The heavy rains and resulting flooding dominated the news, while wind gusts that barely reached 65 miles per hour were shrugged off by state residents.

That heavy rains and flooding were the big stories could be viewed as both a positive and negative for the industry. While actual property/casualty claim losses might remain low, there is the very real fact that the industry is still struggling with a public perception problem. Rightly or wrongly, we are still fighting to build back our battered reputation after Katrina; the last thing we need is another public debate about whether Fay's damages were wind- or water-related. In the midst of that fight are the adjusters, who have the unenviable job of explaining policy in the midst of disasters, whether it's good or bad news for the insured.

At press time, Fay had dumped an unheard-of 30 inches of rain in parts of the East Coast of Florida. That sounds like a lot of flooding to me. If I were a claim manager, I would prepare adjusters for the inevitable policy debates and ensuing anger that they might experience from Floridians. These are the people who pay sky-high premiums for hurricane insurance — justifiably — and who might not be covered after Fay decides to end her extended Florida vacation. One could imagine that some homeowners opted to save money, especially in these tough economic times, by skipping the renewal of their flood insurance policies from the National Flood Insurance Program.

It's a confluence of factors that could lead to a situation that no one wants to revisit. Let's hope the reality of flood exclusions so well publicized three years ago during Katrina have made this type of scenario the exception, and not the rule.