With the increase in natural disasters over the past several years, many are having to reassess weather-related risks and underwriting models. This is especially evident when unexpected events, like Hurricane Helene in September, impact areas not typically prone to such incidents. The Category 4 storm caused severe flooding and property damage throughout the southeastern United States. Many of these areas are not designated hurricane areas, leading many to scramble to cover the damages.
In times of uncertainty, Americans need to be more proactive about insurance coverage. Here’s how insurance agents can best support their clients.
Highlight the Growing Uncertainty of Weather Patterns
Explain to clients that weather patterns are increasingly difficult to predict, leading to a rise in extreme events like hurricanes, floods, and storms in areas previously considered low-risk. With these changes, there’s a greater likelihood of unexpected incidents that could result in liability claims.
Share recent statistics that illustrate how extreme weather events are becoming more common and severe, underscoring the importance of being prepared for the unexpected. Provide specific examples of recent events in their region to demonstrate how these patterns are affecting their immediate environment and why it’s crucial to have adequate protection.
Review and Update Insurance Policies Regularly
Offer to review clients’ existing policies to identify any coverage gaps, especially regarding flood, wind, hail, wildfire, and other weather-related damages that may not be included in standard homeowners or auto policies. Standard policies may not cover all types of damage (e.g., flooding, windstorm, or earthquake damage). Adding endorsements of separate policites can fill the gaps.
Tailor your recommendations based on their risk profile (e.g., proximity to coastal areas, flood-prone zones, or wildfire regions) and explain why updating their coverage is necessary to protect their specific assets.
Evaluate Flood Insurance Needs
Even if your clients aren’t located in a traditional flood zone, encourage them to consider purchasing flood insurance. Flood patterns are changing for a variety of reasons, and many areas previously considered safe may now be vulnerable. Explore coverage options through the National Flood Insurance Program (NFIP), as many homeowners’ policies don’t cover flood damage.
ASNOA partners with Selective Insurance to offer structure and contents coverage for homes and businesses throughout the United States.
Ensure Wind and Hail Coverage
Encourage clients to check if their policy covers damage from wind or hail and offer solutions if additional coverage is needed. This is particularly important for those in hurricane or tornado-prone areas.
Many standard policies have exclusions for wind and hail damage, especially in coastal or high-risk areas. For that reason, it’s essential to confirm whether or not these events are covered and add riders or separate polities as needed.
Review deductible amounts specifically related to wind storms or hurricanes and adjust if necessary to ensure affordability in the event of a claim.
Discuss the Benefits of Comprehensive Auto Insurance
Inform clients about the advantages of comprehensive auto insurance, which can cover weather-related incidents like hail damage, flooding, or falling debris. This is especially valuable for those who rely heavily on their vehicles or live in high-risk regions.
Those who finance or lease may want to get gap insurance to cover the difference between the vehicle’s value and what’s owed if the car is totaled in a weather-related incident. For new cars, gap insurance ensures that depreciation in the first few years doesn’t leave clients with an outstanding loan after a total loss.
Suggest adding roadside assistance as an affordable option for immediate support during extreme weather conditions.
Promote Umbrella Insurance for Extra Protection
Clarify to clients that while homeowners, renters, and auto insurance policies provide some liability coverage, they may not be sufficient in a major event. Explain how umbrella insurance provides an extra layer of liability protection, covering incidents like property damage or injuries caused by weather-related events that exceed the limits of their existing policies.
Emphasize that umbrella insurance is a cost-effective way to ensure comprehensive protection against a variety of risks that may arise from unpredictable weather patterns.
Encourage Mitigation Measures and Offer Discounts
Many insurance companies offer discounts for clients who take preventive measures, such as installing storm shutters, upgrading roofing materials, or adding sump pumps. Encourage clients to make these updates to their homes and vehicles to reduce risks and qualify for premium reductions.
Promote the benefits of having an emergency preparedness plan and securing their properties against potential weather damage as a way to not only increase their safety but potentially lower their premiums.
Make Policy Updates Easy and Convenient
Provide clients with easy access to update their policies through virtual meetings, phone calls, or in-person visits, accommodating their schedules. Streamline the policy review and update process so clients can quickly and efficiently enhance their coverage, making it as hassle-free as possible.
Coach your clients in using weather alert apps and insurance company resources to stay informed about approaching storms and take preemptive action. Suggest signing up for policy notifications to receive reminders about renewals or updates on available coverage options for extreme weather events.
Keep Documentation and Records Up-to-Date
Encourage clients to maintain a detailed inventory of all belongings, including photos and receipts, and store copies in a secure, accessible location (e.g., a cloud service). This documentation helps streamline claims in the event of damage or loss. Update property assessments to reflect improvements or value changes, ensuring accurate coverage levels.
Emphasize the Long-Term Financial Benefits
Highlight how updating coverage can protect the significant investments clients have made in their homes, businesses, and vehicles, preventing massive out-of-pocket expenses in the event of weather-related damage.
Explain that proactive updates and mitigation efforts can help clients get lower rates and avoid unexpected spikes in premiums after major weather events in their area.
Provide Real-Life Examples and Success Stories
Share stories of clients who have successfully protected their assets by updating their coverage before a severe weather event, giving an example of the value of being proactive. Explain how clients with comprehensive coverage or umbrella policies were able to handle claims quickly and efficiently, compared to those with insufficient coverage.
Final Thoughts
Insurance agents who stay informed about emerging weather trends can best serve their clients by recommending necessary policy adjustments and keeping them informed about new coverage options. Focusing on education, personalization, and proactive planning can help motivate clients to enhance their coverage, helping them protect themselves against unpredictable weather patterns and extreme weather events.