Hurricanes always generate a certain dread as well as excitement within the insurance industry.

While insureds may be boarding up windows and packing to leave the area, adjusters may be packing to enter those same areas as soon as the damage is done.

Some are getting ready to go to areas that get struck to handle an onslaught of claims, remaining adjusters will have to handle extra loads, and underwriters will enforce moratoriums and refuse new policies within a given areas.

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Moratoriums

One of the first things that happens when a storm is building is the enforcement of moratoriums on new business. Most carriers have guidelines providing that once a tropical depression, storm or hurricane watch or warning has been issued by the National Weather Service, coverage can't be written until a certain number of hours after the watch or warning expires, usually anywhere from 24 to 78 hours. This is to avoid a person buying insurance because the applicant needs coverage immediately.

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Christine G. Barlow, CPCU

Christine G. Barlow, CPCU, is Executive Editor of FC&S Expert Coverage Interpretation, a division of National Underwriter Company and ALM. Christine has over thirty years’ experience in the insurance industry, beginning as a claims adjuster then working as an underwriter and underwriting supervisor handling personal lines. Christine regularly presents and moderates webinars on a variety of topics and is an experienced presenter.