How homeowners can increase property resiliency in a catastrophe
Fortifying the property and understanding the nuances of homeowners insurance coverage mitigates losses for insureds and insurers.
No matter where a policyholder lives, they are at risk for severe weather or climate events, and being prepared is the best way to mitigate losses. Catastrophes are becoming more commonplace each year. The U.S. set a new record for weather and climate events in 2023, with 28 calamities, beating the previous record of 22 in 2020 and costing a minimum of $92.9 billion, according to the NOAA National Centers for Environmental Information.
“As we saw earlier this year, severe weather can hit any time and cause major damage to your property, but ensuring you are adequately protected can help you recover more quickly,” said Anita Fox, Director of the Michigan Department of Insurance and Financial Services (DIFS) in a March 18 press release.
Policy preparedness
The DIFS advises policyholders to prepare for potential catastrophes such as floods, tornados, hailstorms and hurricanes by first understanding their insurance policy and the nuances of their coverage. Many policyholders are surprised to learn they’re not fully protected in some situations, such as flooding and damage caused by sewer back-up.
“Lack of flood insurance is the most significant insurance gap we see throughout the U.S.,” said Mark Friedlander, Director of Corporate Communications at the Insurance Information Institute (Triple-I). “Only 4% of U.S. homeowners have flood insurance. Yet, 90% of U.S. natural disasters involve flooding, so it can flood just about anywhere, any time… Last summer, we had severe flooding in the California desert.”
Talking with an agent about policy coverage before property damage occurs can help insureds avoid significant financial hardships. DIFS offers other tips to prepare homeowners and renters for claims after a disaster below.
- List out personal possessions and take photos of each room.
- Compile a list of family members, insurance agents, insurance companies, emergency responders and others, including their contact information.
- Store a copy of the insurance policy declaration documents, health insurance cards and other crucial paperwork in a safe place.
- Establish an emergency plan and fund to cover the insurance policy’s deductible and other potential expenses in the aftermath of a catastrophe.
After a flood, tornado or other natural disaster causes property damage, contact the insurance agent to file the claim. Document the property damage with videos and pictures and take reasonable, though not permanent, steps to protect the home from further loss before restoration.
Fortifying properties
The road to disaster resiliency relies on preparing and protecting properties from hurricanes, wildfires and the like. Fortifying the home benefits both the property owner and the insurance company—the insured suffers fewer losses, and the insurer pays out fewer claims.
“You will qualify for discounts from your insurance company if you fortify your home,” said Friedlander. “Insurers have to offer you discounts for taking mitigation steps, so it’s more than just making your home more secure and less chance of damage… It’s going to save you on your premiums.”
Hurricane resiliency measures recommended by Triple-I:
- Replace gravel and rock landscaping with shredded bark.
- Cut weak branches and trees that may fall.
- Install storm shutters to protect windows.
- Ensure exterior doors are wind-rated to withstand strong hurricane winds and sliding glass doors are made with tempered glass.
- Fortify roofs with roof-tiedowns.
- Have a licensed professional inspect the roof before hurricane season.
- Replace old garage doors and tracks with a door approved for wind pressure and impact protection.
- Seal outside wall openings.
Wildfire resiliency measures recommended by Triple-I:
- Maintain a five-foot distance of defensible space surrounding the home with concrete, gravel, or brick and expand it up to 30 feet.
- Move storage sheds, trailers, RVs, etc., from the defensible space or build one around them.
- Thin trees, prune branches, and remove dead plants and shrubs under trees.
- Choose non-combustible material for siding, fencing and gates.
- Regularly clean roof and gutters.
- Install a Class A fire-rated roof.
- Cover vents and add soffited eaves.
- Use windows made with multi-pane, tempered glass and close them when wildfire occurs.
- Fireproof the deck.
- Keep combustibles, such as playground equipment, at least 30 feet from the house.
For homeowners looking to increase their resiliency efforts, DIFS recommends the U.S. Climate Resilience Toolkit to manage risks.
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