Insurance Adjusting After Hurricanes and Tornadoes
Prepared by Michael Lustig
Contributing Editor: Denise Iona
Distributed by:
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© Copyright 2010 - 2006 by Michael Lustig, Real Estate License Services. Copyright registered. All contents protected by laws of copyright. No portion of this book may be reprinted, reproduced, transmitted, stored in a retrieval system or on the Internet, or otherwise utilized in any form or by any means, electronic, mechanical, or otherwise, including photocopying or recording, now existing or hereinafter invented, nor may any part of this book be used for teaching without the prior written consent of Michael Lustig.
TABLE OF CONTENTS
CHAPTER 1: SEVERE WEATHER
INTRODUCTION
THE TROPICAL CYCLONE
TROPICAL DEPRESSION - TROPICAL STORM - HURRICANE - TYPHOON
HURRICANES
HURRICANE HAZARDS
STORM SURGE - HIGH WINDS - TORNADOES - FLOODING
HURRICANE WATCH VS. HURRICANE WARNING
HURRICANE WATCH - HURRICANE WARNING
THE SAFFIR-SIMPSON HURRICANE SCALE
CATEGORY 1 - CATEGORY 2 - CATEGORY 3 - CATEGORY 4 - CATEGORY 5
THE HIGH COST OF HURRICANES
EVERYDAY LIFE - TRANSPORTATION - BUSINESS LOSS - REAL ESTATE - ENVIRONMENTAL LOSSES - COSTLIEST HURRICANES - DOLLARS AND CENTS
HURRICANE PREPAREDNESS
TORNADOES
WEATHER CONDITIONS PRODUCING TORNADOES
TORNADO DAMAGE
TORNADO WATCH VS. TORNADO WARNING
FUJITA TORNADO DAMAGE SCALE
F0 - F1 - F2- -F3 - F4 - F5
TORNADO DAMAGE VS. HURRICANE DAMAGE
THE HIGH COST OF SEVERE WEATHER
TORNADO PREPAREDNESS
CHAPTER 2 : SPECIAL CHALLENGES TO CLAIMS HANDLING
INTRODUCTION
NATURAL DISASTER CLAIMS
PSYCHOLOGICAL AFTERMATH FOLLOWING A CATASTROPHIC WEATHER EVENT
CHALLENGES TO EFFICIENT CLAIMS ADJUSTING AFTER A SEVERE WEATHER EVENT
PUBLIC HEALTH - PUBLIC SERVICES - ENVIRONMENTAL DAMAGE - INFRASTRUCTURE - TELECOMMUNICATIONS ISSUES - EMERGENCY RESPONSE SYSTEMS COMPROMISED - ENERGY ISSUES - LOGISTICAL ISSUES
REACHING OUT TO POLICYHOLDERS
CHAPTER 3: REBUILDING AFTER A DISASTER
DISASTER DECLARATION
AVAILABLE FEDERAL ASSISTANCE
INDIVIDUAL ASSISTANCE - PUBLIC ASSISTANCE - HAZARD MITIGATION
STATE OF EMERGENCY DECLARATION BY THE GOVERNOR
CHAPTER 4: DEPARTMENTS OF INSURANCE EMERGENCY ADJUSTING RULES
IMMEDIATE DANGER TO THE PUBLIC HEALTH, SAFETY, OR WELFARE
DEPARTMENT OF INSURANCE EMERGENCY RULES
NONRESIDENT AND EMERGENCY ADJUSTERS - TAKING ADVANTAGE OF INSUREDS OR CLAIMANTS - FEE LIMITATIONS ON PUBLIC ADJUSTERS - ACCEPTING PAYMENT PRIOR TO SETTLEMENT - CONTRACT TERMS - GENERAL ETHICAL REQUIREMENTS - TOTAL LOSS CLAIMS
CHAPTER QUIZZES
CHAPTER 1 – SEVERE WEATHER
CHAPTER 2 – SPECIAL CHALLENGES TO CLAIMS HANDLING
CHAPTER 3 – REBUILDING AFTER DISASTER
CHAPTER 4 – DEPARTMENTS OF INSURANCE EMERGENCY ADJUSTING RULES
CHAPTER 1: SEVERE WEATHER
The atmosphere is constantly moving and changing around the earth. Weather is the state of the atmosphere at a specific time. Weather is made up of wind direction, wind force, temperature, moisture and precipitation, heat from the sun, and cover from the clouds.
The driving force creating our weather is the general circulation of the atmosphere, which is caused by uneven heating of the earth's surface. Energy from the sun causes uneven heating of land and sea. The sun warms the earth's surface which, in turn, warms the air above it. The air at the equator is much warmer than the air at the poles. When warm air expands and rises, it creates an area of low pressure as it moves slowly away from the equator.
Conversely, cold air is dense and sinks. On the way back down, the air gradually loses heat and creates an area of high pressure. Winds occur because the atmospheric pressures try to balance themselves, and the earth’s rotation causes the high and low pressure winds to spiral. The differences in air temperature and pressures over the world create wind. The high and low pressure systems have a major influence on us at different times of the year.
As the warm air rises and the cold air descends over the earth spinning on its axis, wind patterns become increasingly complex. Once air has been set in motion, it experiences an apparent deflection from its path called the “Coriolis effect,” the result of the earth's rotation. The Coriolis effect explains why macroevents such as hurricanes rotate in a clockwise direction in the Southern Hemisphere and counterclockwise in the Northern Hemisphere.
The term “severe weather” is generally used to describe destructive weather events. Typically the term applies to localized storms such as severe thunderstorms, hurricanes, and tornadoes.
THE TROPICAL CYCLONE
In meteorological terms, “tropical cyclone” is the term used to describe a lowpressure system that typically forms in the tropics. A low-pressure system is found where the atmospheric pressure is lowest relative to the surrounding area. We tend to think of these cyclones as senseless disasters, but they are actually an important part of our atmospheric circulation system, which moves heat from the equatorial region toward the higher latitudes.
A tropical cyclone may be referred to as a “tropical depression,” “tropical storm,” “typhoon,” or “hurricane,” depending on its strength and geographical context. The cyclone is accompanied by thunderstorms and, in the Northern Hemisphere, a counterclockwise circulation of winds near the earth's surface.
Tropical cyclones are classified as follows:
TROPICAL DEPRESSION
A tropical depression is an organized system of clouds and thunderstorms with a defined surface circulation and maximum sustained winds of 38 mph (33 kts) or less.
TROPICAL STORM
A tropical storm is an organized system of strong thunderstorms with a defined surface circulation and maximum sustained winds of 39 - 73 mph (34 - 63 kts).
HURRICANE
A hurricane is a low-pressure system generally formed in the tropics, the area between the Tropic of Cancer (23.5° North) and the Tropic of Capricorn (23.5° South). This storm is intense with strong thunderstorms and a well-defined surface circulation and sustained winds of 74 mph (64 kts) or higher.
TYPHOON
“Typhoon” is the term for hurricane when the cyclone takes place in the North Pacific west of the International Date Line.
HURRICANES
Hurricanes are cyclones that develop over the warm tropical oceans and have sustained winds of 74 mph or higher. Hurricanes are capable of producing dangerously high winds and torrential rains and flooding. These events result in enormous property damage and loss of life in coastal populations.
Hurricanes are formed from of group of thunderstorms. These thunderstorms can escalate to hurricane strength only with the cooperation of the ocean and the atmosphere. The temperature of the ocean water must be warmer than 81 degrees. The heat and moisture from this warm water is the source of energy for hurricanes. A hurricane will quickly deteriorate when it travels over land or colder ocean waters because these conditions lack insufficient heat and/or moisture.
Coastal communities devastated by severe hurricanes can take many years to recover, and many forces of nature contribute to the destruction. Hurricane force winds can easily destroy poorly constructed buildings and mobilehomes. As winds increase, pressure against objects increases at a disproportionate rate. For example, a 25 mph wind causes about 1.6 pounds of pressure per square inch. In 75 mph winds, that force becomes 450 pounds, and in 125 mph winds it becomes 1,250 pounds.
Debris such as signs, roofing material, and outdoor equipment can literally become missiles in hurricanes, as it is propelled by the winds compounding the damage. Extensive damage to fallen trees, towers, and power lines cause considerable damage and disruption. When the wind exceeds design specifications, structural failure occurs.
The Atlantic hurricane season runs from June 1 through November 30. However, storms have been known to hit before and after these dates.
HURRICANE HAZARDS
Hurricane hazards come in the form of storm surges, high winds, tornadoes, and flooding.
STORM SURGE
Storm surge is water pushed toward the shore by the force of the winds churning around the storm. As the surge advances, it combines with the ordinary tides to create the hurricane storm tide. This combination can increase the mean water level by 15 feet or more. Wind-driven waves cover the storm tide and move the water forward.
This rise in water level can cause severe flooding in coastal areas, especially when the storm tide coincides with the normal high tides. If a storm surge happens at high tide, the damage is much worse. One cubic yard of water weighs about 1,700 pounds, and because much of the United States' densely populated Atlantic and Gulf Coast coastlines lie less than 10 feet above mean sea level, the danger from storm tides is enormous.
HIGH WINDS
The intensity of a hurricane is determined by the speed of its winds. This wind is responsible for structural damage to buildings, as well as uprooting trees and downing power lines. High-rise buildings are especially vulnerable to hurricane force winds since wind speed tends to increase with height.
Even a hurricane significantly weakened by its passing over land can carry winds strong enough to cause extensive destruction. The strongest winds usually occur in the right side of the eyewall of the hurricane.
Although wind speed usually decreases significantly within 12 hours after landfall, hurricane force winds can linger well inland.
TORNADOES
Hurricanes frequently produce tornadoes that contribute to their already dangerous force. While tornadoes are most likely to occur in the right front quadrant of the hurricane, they can also be found embedded in the rain bands well away from the center of the hurricane.
Some hurricanes spawn numerous tornadoes, while others develop none at all. Generally, the tornadoes associated with hurricanes are less severe than tornadoes that occur in the Great Plains region of the United States. Even so, the consequences of tornadoes, considered along with hurricane force winds, can produce extensive damage.
Tornadoes are not as predictable as hurricanes. Meteorologists cannot predict which storms will generate tornadoes or where they will hit. The lead time for tornado touchdown ranges from only a few minutes to approximately 30 minutes. When they are associated with hurricanes, tornadoes are not usually accompanied by hail or severe lightning.
Once a hurricane makes landfall, tornado production can occur for several days as long as the remainder of the storm continues an identifiable low pressure circulation. Tornadoes occur during both day and nighttime. However, 12 hours after landfall, they are more likely to occur during the daytime hours.
FLOODING
Inland flooding is the most deadly hurricane hazard of all. According to the National Hurricane Center, in the last 30 years, inland flooding has been responsible for more than half the deaths associated with tropical cyclones in the United States.
Severe rainfall is not directly related to the wind speed of a hurricane. Some of the greatest amounts of rainfall occur from less intense storms that have a slow forward speed of 1 - 10 mph or that or stall over an area.
Flooding from hurricanes can occur hundreds of miles from the coast, and this places communities, which would not normally be affected by the strongest hurricane winds, in great danger.
To estimate the total amount of rainfall that can be expected from a tropical system, divide 100 by the forward speed of the storm in miles per hour: 100/forward speed = estimated inches of rain. Of course, local weather forecasters will have a more accurate prediction of an area’s rainfall.
The following facts are made available by the Federal Emergency Management Agency (FEMA) with respect to flooding:
Freshwater floods accounted for more than half (59%) of U. S. tropical cyclone deaths over the past 30 years. These floods are why 63% of U. S. tropical cyclone deaths during that period occurred in inland counties.
Over the past 30 years, 78% of children killed by tropical cyclones drowned in freshwater floods.
One cubic yard of water weighs 1,700lbs. The average automobile weighs 3,400lbs. Many automobiles will float in just two feet of water.
The average person can be swept off his/her feet in six inches of moving water.
The average automobile can be swept off the road in 12 inches of moving water.
At least 23% of U. S. tropical cyclone deaths occur to people who drown in, or attempting to abandon, their cars.
Rainfall is typically heavier with slower moving storms.
HURRICANE WATCH VS. HURRICANE WARNING
Many people are confused about the terms “hurricane watch” and “hurricane warning.”
HURRICANE WATCH
When an approaching hurricane is considered a threat to coastal and inland areas, meteorologists issue a “hurricane watch.”
A hurricane watch alerts those in the area to be prepared to act if an actual hurricane warning is issued and to “watch” for further alerts. A watch informs the public that conditions are favorable for a hurricane and that there is a fairly good chance that the event will happen.
Hurricane watches are intended to heighten public awareness of the situation. When a watch is issued, residents should begin making preparations for the event and should listen to local media to know if a warnings is issued.
HURRICANE WARNING
A hurricane warning means that the dangerous weather is threatening the area. The storm is imminent, and measures should be taken to safeguard life and property immediately. Residents should either evacuate or move to safe shelter.
A warning indicates that sustained winds of 74 mph or greater associated with a hurricane are expected in a specified coastal area in 24 hours or less. Also, a hurricane warning can remain in effect when dangerously high water or a combination of dangerously high water and exceptionally high waves continue, even though winds may be less than hurricane force.
THE SAFFIR-SIMPSON HURRICANE SCALE
The ingredients for a hurricane include a pre-existing weather disturbance, warm tropical oceans, moisture, and relatively light winds. When conditions are right and endure long enough, they can unite to produce the violent winds, huge waves, torrential rains, and floods we associate with the phenomenon of hurricanes.
The Saffir-Simpson Hurricane Scale expresses hurricane categories that relate wind speed and its potential damage. These categories are primarily used to provide the public with an idea of the potential damage from an approaching hurricane. A Category 1 storm has the lowest wind speeds, while a Category 5 hurricane has the highest wind speeds.
It is important to note that these are relative terms since lower category storms can sometimes cause greater damage than higher category storms, depending on where they strike, the particular hazards they bring, and the population density in the areas of strike. For example, tropical storms can produce significant damage and loss of life mainly due to flooding, even though wind force may not be especially great.