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  1. 1. Hurricane InsurancePresented by Group 3
  2. 2. Group 3 MemberMa Hnin Thiri Chaw (Roll no. 4) { Leader }Ma May Zin Htet (Roll no. 14)Ma Mya Myin Kyi (Roll no. 25)Ma May Myo Mon (Roll no. 36)Ma May Thu Naing (Roll no. 45)Mg Thein Oo (Roll no. 53)Ma Zin Hnin Phyu (Roll no. 57)Ma Khine Hnin Hnin Thu (Roll no. 71)Ma Yin Mar Naing Win (Roll no. 81)Ma Ei Ei Phyo Zaw (Roll no. 90)
  3. 3. ContentWhat is hurricane?Type of Hurricane5 categories of HurricaneMitigationInsurance Review and Hurricane InsuranceInsurance CoveragePerilHow much insurance is enough?How to file an insurance claim for hurricane damage?
  4. 4. What is Hurricane?• A hurricane is a type of tropical cyclone, the generalterm for all circulating weather systems over tropicalwaters (counterclockwise in the Northern Hemisphere).
  5. 5. Type of HurricaneType DescriptionTropical DepressionAn organized system of clouds and thunderstormswith a defined circulation and maximum sustainedwinds of 38 mph (33 knots) or less.Tropical StormAn organized system of strong thunderstormswith a defined circulation and maximum sustainedwinds of 39 to 73 mph (34-63 knots).HurricaneAn intense tropical weather system with a well-defined circulation and maximum sustained windsof 74 mph (64 knots) or higher. In the westernPacific, hurricanes are called ―typhoons,‖ andsimilar storms in the Indian Ocean are called―cyclones.‖
  6. 6. Category 1: Minimal DamageWinds: 74-95 mphCategory 2: Moderate DamageWinds: 96-110 mph
  7. 7. Category 3: Extensive DamageWinds: 111-130 mphCategory 4: Extreme DamageWinds: 131-155 mph
  8. 8. Category 5: Catastrophic DamageWinds: More than 155 mph
  9. 9. Mitigation• Mitigation is an action to avoid loss of life andproperty and it may reduce your risk of becominga disaster victim.• Those things are called mitigation.• There are many low-cost actions you can take toprotect yourself, your home, or your busines fromlosses.– Protection from wind– Protection from flood
  10. 10. Protection From Wind• Analyze structural strengths and weaknesses of yourhome.• Retrofit your existing roof.• Secure all outdoor furniture to prevent it from blowingaway.• Install plywood at least 1/2 thick or build stormshutters to protect windows.• Install braces to give additional support to garagedoors.
  11. 11. Protection From Flooding• Buy flood insurance. To obtain information on floodinsurance, contact your local insurance agent.• Move valuables and appliances out of the basement.• Have the main breaker or fuse box and utilitymeters elevated above expected flood levels.• Heed flood warnings by leaving early and removingbelongings that may be damaged in the event of aflood.
  12. 12. Insurance ReviewInsurance Service recommends the following items foryour hurricane preparation list:• Review insurance coverage with your agent. Knowyour policy’s deductibles and how your policy handlesproperty that is damaged or destroyed.• Ask your agent about ways to reduce chances of lossor damage, such as installing hurricane shutters.• Keep your household inventory up to date andstore it in a safe place away your home.• Coastal residents may need several insurancepolicies to protect their homes and property from alltypes of damage.
  13. 13. Insurance Review• Purchase flood insurance. Flood insurance is notpart of most hurricane and home owner’s policies.• You cannot buy hurricane insurance after ahurricane watch or warning has been issued.• If you evacuate, carry your agent’s name andphone number, policy number and insurancecompany’s claims phone number with you.
  14. 14. Hurricane Insurance• provide coverage for losses resulting fromhurricanes• except for flood loss associated with thehurricane.• flood and hurricane policy are very differentinsurance entities• need to purchase both insurances to become fullyprotected.
  15. 15. Hurricane Insurance• Often limited to wind damages and does notinclude flooding.• Depending on the policy, hurricane insurance willcover resulting– fire or vandalism,– hurricane clean up such as debris removaland repairs,– cash or replacement value of damagedproperty.• Additional Living Expenses (ALE) may also beprovided should it become necessary for you tostay at a hotel if your home becomes unliveable.
  16. 16. Insurance CoverageWhat is a Covered Property?The four separate categories for your home, asdefined by insurance companies, are:• 1. Dwelling – the structure of the house• 2. Other Structures –structures that areseparate from the house, such as a tool shed ordetached garage.
  17. 17. Insurance Coverage• 3. Personal Property includes furniture,appliances and clothing. Not all personal propertyis covered for example , money, jewelry andfirearms.• 4. Loss of Use – When a loss occurs due to acovered peril and the dwelling becomesuninhabitable, the cost of additional livingexpenses is covered.
  18. 18. “Open Perils” and “NamedPerils” Coverage• A peril is a cause of loss, such as flood or wind.• Coverage can be provided on an ―all perils‖ basis,or a ―named perils‖ basis.• Named Perils policies list exactly what iscovered by the policy.• Open Perils (or All Perils) policies will list what isexcluded from coverage.• Named Perils policies are generally morerestrictive.
  19. 19. Package Versus Peril-SpecificCoverage• A package policy provides coverage for multiple,but usually not all perils.• A homeowners policy is a package policytypically providing coverage for the perils of fire,lightning, and extended coverage. Extendedcoverage includes coverage for the perils ofwindstorm, hail, explosion, riot, civil commotion,aircraft, vehicles, smoke, vandalism, maliciousmischief, theft, and breakage of glass.• Some policies, such as earthquake or floodpolicies, provide coverage for specific perils thatare often excluded in package policies. Damagescaused by wind as a result of an hurricane may becovered by a standard hurricane policy.
  20. 20. Personal Property CoverageChoices• Depending on type of policy, the different personalproperty coverage options could be:1. Replacement Cost Coverage2. Actual Cash Value
  21. 21. How Much Insurance IsEnough?Depending on the type of policy, the different dwellingcoverage options could be:• 1. Replacement Cost Coverage• 2. Actual Cash Value• 3. Special Payment - loss is paid before dwelling isrepaired, rebuilt or replaced.• 4. Functional Replacement Cost or Market ValueCoverage - repairs are made using common, modernmaterials and methods without deduction for depreciationunless repairs are not made, and if a total loss, thepayment amount will be the market value of the home.• 5. Stated Value - a selected value is established by theinsured, and this value is the limit of liability.
  22. 22. What Does Insurance-to-ValueRatio Mean?• This is the relationship of the amount of insurancepurchased to the replacement value of theproperty.• It is important to have an accurate assessment ofthe replacement cost value of your home.• If you do not, and then have a loss, the cost toactually replace your home may be more thanyour insurance policy will provide.
  23. 23. Ways You May Be Able ToAffect Your Premium• A deductible is the amount of loss paid by thepolicyholder before any loss is paid by the insurer.The larger the deductible, the lower the premium.• A policy may have different deductibles based on theperil of the loss.• Two type of deductible-– 1.dollar deductable– 2. percentage deductable• One of the more common percentage deductibles isthe hurricane percentage deductible, which applies todamage solely from hurricanes.• Therefore a policyholder may have a $1,000deductible for fire losses, but a 2% deductible forhurricane losses. Hurricane percentage deductiblescan be very significant. ($100,000,000 loss willoccur, the policy holder will not pay if the loss isunder $2,000,000)
  24. 24. Well-known and destructivestorms• Hurricane Katrina in 2005• Hurricane Charley in 2004• Hurricane Andrew in 1992.• 2004-2005 ( two consecutive severe storm season).• 2006 and 2007 seasons were relatively quiet and the lackof hurricanes provided a welcome but short-term respite• Losses from the 2008 Gulf Coast hurricanes weresignificant (estimated to be approximately $11 billion)
  25. 25. How To File An Insurance ClaimFor Hurricane Damage1. Do no harm.2. Contact your insurer.3. Document losses.4. Minimize damage.5. Arrange for repairs.6. Keep receipts.
  26. 26. 1.Do not harm• One of the few hurricane-related deaths so far involvedsomeone who fell off a ladder.• Don’t become a statistic by going out on the roof orwading through knee-high water in your basement(where you could get shocked by electrical current).• Instead call for emergency help from your police or firedepartment.
  27. 27. 2. Contact your insurer.• Weather forecasters gave insurance companies enoughnotice that many already have systems in place forhelping customers with claims.
  28. 28. 3. Document losses.• Take pictures and make notes briefly describing whathappened.
  29. 29. 4. Minimize damage.• For most people this will mean starting to dry thingsout.• Spread wet items on absorbent paper towels or onwire racks if you have them.• Unpack the contents of cartons that got wet.• Use box fans to promote circulation and combatmildew.• If you have lost power, keep the refrigerator doorclosed to reduce the chance that food will spoil.
  30. 30. 5. Arrange for repairs.• The sequence of events—whether you contact yourinsurance company first, or immediately find someoneto fix the damage–will obviously depend on whetheryou’re dealing with an emergency.• Your insurer may be able to offer a referral for treeremoval, carpet cleaning or painting restoration.
  31. 31. 6. Keep receipts.• Most companies won’t require you to show what youinitially paid for items that have been damaged.• But they do want to know what you spent as aresult of the loss. So if your policy covers evacuationexpenses, like hotel, transportation, meals andclothing expenses, keep detailed records of what youshelled out.
  32. 32. Thank you!