New Space Offers New Solutions for Insurers Looking to Better Assess Exposure

One of the biggest issues facing CAT insurers is assessing risk in an uncertain future. As catastrophic storms increase in number and intensity, CAT insurers must prepare accordingly. Specifically, the increasing number and intensity of hurricanes in the Atlantic Ocean and Gulf of Mexico require insurers to find innovative ways to assess risk and address underwriting challenges. Over the past thirty years, insurers have been forced to adapt policies to fit the changing world. This has included the development of new or different exclusions and deductibles. 

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Revised Predictions Forecasting A More Active Atlantic Hurricane Season Are Coming To Fruition

The 2019 Atlantic hurricane season officially began on June 1 and runs through November 30, although Subtropical Storm Andrew made 2019 the fifth consecutive year to have a named storm form outside of that time frame. The Atlantic season includes the Atlantic Ocean, Gulf of Mexico, and the Caribbean Sea.

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Hurricane Dorian Claims: Spotlight On Independent Adjusters’ Liability

After devastating the Bahamas, Hurricane Dorian has moved up the Atlantic Coast and is now affecting the Canadian Maritimes. Dorian was the fifth Atlantic hurricane to reach Category Five status in four years and has already broken records with sustained wind speeds exceeding 185 miles per hour. Many are attributing Dorian’s strength and fury to climate change. Although Dorian was ultimately downgraded - it is now a Category 1 after impacting the Carolinas as a Category 2/3 - it has had wide-reaching impacts along the Eastern Seaboard, and early estimates suggest the cleanup and repairs will cost tens of billions of dollars.

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Governor Extends State Emergency in Florida in Advance of Hurricane Dorian

On August 29, 2019, Governor Rick DeSantis issued Executive Order number 19-190 that extended the state of emergency in Florida to cover every county in the state. Hurricane Dorian is now predicted to be a Category 4 hurricane when it makes landfall in Florida sometime this weekend. If that prediction is accurate, it would be the most powerful hurricane to strike the East Coast of Florida since Hurricane Andrew in 1992. Early predictions paint a potential insurance exposure that could approach $145 Billion. As with Hurricane Michael which struck the panhandle of Florida in October of 2018, our previous discussions related to business interruption and concurrent causation in Florida may be relevant to claims that arise from Hurricane Dorian.

Posted by Jonathan MacBride

Hurricane Dorian Approaches Florida

Hurricane Dorian is now predicted to strike Florida’s East Coast as a possible Category 3 hurricane. On August 28, 2019, Governor Rick DeSantis issued Executive Order number 19-189 declaring a state of emergency in a number of counties along the east coast. Attached is a checklist that provides some information for carriers that may be facing claims in Florida from Dorian.

Posted by William Zieden-Weber and Christine Renella

New Florida Case Alert: Retained Public Adjuster Was Not “Disinterested” Appraiser

First-party property policies typically include appraisal provisions requiring each party to appoint a “disinterested” or “impartial” appraiser. A Florida appellate court recently addressed the question of what makes a potential appraiser “disinterested” in a case involving a Hurricane Irma claim.

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Zelle Hosts CAT-Law Webinar Week

Managing Insurance Claims in the Wake of Catastrophes
July 22-26, 2019

Zelle LLP invites you to join us for a week of webinars featuring insurance topics that are of critical importance to adjusters and insurance professionals. This series will cover managing insurance claims in the wake of catastrophes. All webinars will be offered free of charge and 1.0 of CE credit will be offered to attendees. These courses have been approved for CE credit in the following states: Florida, Georgia, North Carolina, Oklahoma, Texas, and Wyoming.

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Puerto Rico’s New Requirements for Property Insurers: Financial Reviews & Disaster Response Planning

In response to the extremely active 2017 Atlantic hurricane season, the governor of Puerto Rico enacted several bills that amend or introduce new provisions to the Insurance Code of Puerto Rico, 26 L.P.R.A. § 101 et seq., including provisions regarding additional civil remedies against insurers, as well as new requirements for insurers, surplus carriers, and micro-insurance providers.

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The Disaster Recovery Reform Act of 2018 intends to increase disaster preparedness

As referenced in our recent CAT-Law post on the Catastrophic Losses of 2018, at the end of 2018 Congress passed the Disaster Recovery Reform Act of 2018 (DRRA) in an effort to improve the nation’s overall capacity to respond to large-scale disasters. The DRRA reflects lawmakers’ concern that the Federal Emergency Management Agency (FEMA) alone was ill-equipped to respond to large-scale disasters, which appear to be occurring with increasing frequency and severity since Hurricane Katrina in 2005. Notably, 2017 and 2018 brought Hurricanes Harvey, Maria, and Irma in rapid succession, as well as massive wildfires in California and elsewhere.

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The Catastrophic Losses of 2018

Last year, the United States experienced the top three largest natural catastrophes in the world with overall losses. The three most significant events were the California Wildfire, Hurricane Michael, and Hurricane Florence. The United States sustained 14 significant weather- and climate-related disaster events in 2018. According to the National Oceanic and Atmospheric Administration (“NOAA”), the overall damage from weather-related catastrophes and climate disasters reached approximately $91 billion.

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North Carolina Invokes Its Disaster Mediation Program

The North Carolina Insurance Commissioner has activated the North Carolina Department of Insurance’s Disaster Mediation Program for first party claims in the wake of Hurricane Florence. The Program only becomes available if 1) a state of disaster has been proclaimed (by the Governor or the President) for all or part of North Carolina, within 60 days following the event, and 2) the Commissioner of Insurance subsequently orders Program activation. On September 14, 2018, the President of the United States issued a declaration of disaster for twenty-eight counties in North Carolina. The counties include: Beaufort, Bladen, Brunswick, Carteret, Columbus, Craven, Cumberland, Duplin, Greene, Harnett, Hoke, Hyde, Johnston, Jones, Lee, Lenoir, Moore, New Hanover, Onslow, Pamlico, Pender, Pitt, Richmond, Robeson, Sampson, Scotland, Wayne and Wilson counties. On September 27, 2018, the Commissioner of Insurance issued an order activating the Program. North Carolina has contracted with the American Arbitration Association to act as the Program Administrator.

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Hurricane Michael - Florida Office of Insurance Regulation Emergency Order

On October 15, 2018, the Florida Office of Insurance Regulation issued an Emergency Order related to Hurricane Michael.

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Hurricane Michael - Business Interruption Coverage in Florida and Georgia

Hurricane Michael’s devastation of the Florida Panhandle and damage caused as it moved through the South and mid-Atlantic regions of the United States, will undoubtedly result in claims for lost income from the interruption of business. Whether these losses will be covered will depend on the policy wording used and the specific facts of each loss. Nevertheless, in anticipation of these claims, it is prudent to become familiar with the outcome of prior litigation arising out of business interruption and/or suspension of operations coverage disputes, as these cases can be instructive.

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Hurricane Michael: Concurrent Causation in Florida

Hurricane Michael is making landfall in the panhandle of Florida as a wildly unexpected Category 4 hurricane. There will unquestionably be damage to structures caused by both storm surge/flood and wind. To the extent that one of the causes (e.g., storm surge/flood) is excluded and one cause (e.g., wind) is covered, this will inevitably lead to disputes over causation and the application of the concurrent causation doctrine.

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Hurricane Michael First Party Property Claims Checklist for Georgia

On October 9, 2018, in anticipation of Hurricane Michael pushing through the panhandle of Florida and impacting the lower half of Georgia, Governor Nathan Deal issued a State of Emergency for most of the counties in the southern half of the state. Based on the size and intensity of Hurricane Michael as it makes landfall in Florida, it is likely that many of those counties will encounter intense winds and significant rainfall.

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Hurricane Michael First Party Claims Checklist for Florida

On October 7, 2018, Governor Rick Scott issued Executive Order 18-276 officially declaring a state of emergency in 26 counties including Escambia, Santa Rosa, Okaloosa, Walton, Holmes, Washington, Bay, Jackson, Calhoun, Gulf, Gadsden, Liberty, Franklin, Leon, Wakulla, Jefferson, Madison, Taylor, Hamilton, Suwannee, Lafayette, Dixie, Columbia, Gilchrist, Levy, and Citrus counties in response to potential landfall from Tropical Storm Michael. On October 8, 2018, Governor Scott issued Executive Order 18-277 which recognized the then Tropical Storm Michael would likely strike the Florida panhandle as a Hurricane and extended the previous Executive Order to include Baker, Union, Bradford, Alachua, Hernando, Pasco, Pinellas, Hillsborough, and Manatee counties.

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Should We Reclassify the Biggest CATs?

Typhoon Mangkhut, a Category 5 storm that ravaged the Philippines and China earlier this month, got us thinking about just how bad typhoons and hurricanes may become if the predictions of climate scientists continue to be proven accurate.  We’ve all seen the claims that a warmer atmosphere and warmer ocean waters will lead to stronger storms, higher winds, greater storm surge, and more rain and flooding.  Typhoon Mangkhut and Hurricane Florence seem consistent with those predictions, and Mangkhut may even call into question whether a new level of storm classification will be appropriate in the future.

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Hurricane Florence- Fears of Pollution From Flooded Ash Dumps and Hog Farms

The flooding that has accompanied Hurricane Florence raised concerns about pollution from flooded ash dumps and hog farms. With confirmation of at least one failure of an ash dump and the breach of a lagoon holding hog waste, those concerns have become a reality. How this pollution may impact first party property claims remains to be seen.

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Hurricane Florence - Contingent Business Interruption Claims Reaching Far Beyond Its Outer Bands

The devastating impact of Hurricane Florence may be felt well beyond North and South Carolina Boasting over 460,000 manufacturing workers, North Carolina has the largest manufacturing workforce in the Southeast, and the 10th largest in the U.S. Manufacturing accounts for 20 percent of the state’s GSP, fifth-highest in the nation. North Carolina is home to more than 290 automotive manufacturing establishments and a workforce of over 26,000. North Carolina’s automotive manufacturing industry grew 25 percent in the past five years.

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Hurricane Florence: Civil Authority and Ingress/Egress Coverage in North and South Carolina

The evacuation orders issued in both North and South Carolina in advance of Hurricane Florence and the extensive flooding following its landfall will no doubt give rise to business interruption claims. Typically, coverage for these claims will fall under coverage for “civil authority” or “ingress/egress.”  Coverage for “civil authority” is usually an extension of coverage with similar language to the following:

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