Hurricane Preparedness – Insurance Edition by Ismary Cardoso from EGIS
Anyone living near the Florida coastline is unfortunately familiar with the nerve-wracking five-month period known as Hurricane Season. During this time, we prepare for the worst and hope for the best.
Even though Floridians go through this almost half of the year, every year, it always feels like we haven’t done enough or there is something we are missing. Yes, it is daunting, scary, and tiresome, but it is necessary to protect our lives and property.
Charter school leaders wear many hats, including that of hurricane preparedness to ensure they preserve their scarce resources. The basics are easier to cover, but when we wonder, “What else could I have done to prepare better?” we usually don’t come up
with much more.
As the leading charter school insurance agency in Florida, Egis Insurance & Risk Advisors is here to provide guidance to your school ahead, during, and after the storm. In the aftermath of every hurricane season there are always lessons learned and key
takeaways to help better protect your school. Here are some best practices we have identified over the years for better handling of catastrophic events:
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- Designate a Point of Contact: Assign someone from your organization to handle property losses and insurance claims. Most property policies require the insured to report losses as soon as feasible and to be available for on-site inspections as soon as it is safe. It’s easier to plan before and be ready, than to wonder after the fact, who should be taking the lead.
- These simple steps can help ensure that your charter school is better prepared for hurricane season and can recover more quickly in the event of a storm. For more detailed checklists and guides, feel free to visit the Egis Storm Center: https://egisadvisors.com/storm-center/. Stay safe and ready!
- Communicate with Your Agent/Carrier: Most insurance providers proactively send their insureds important contacts before an impending storm, so they know who to reach out to if damage occurs. If you don’t receive this information, inquire about it and keep it handy. This information should include:
- Name, email, and direct phone number of your insurance agent/representative.
- Claims-reporting number/email of your insurance provider.
- Name, email, and number of any mold, fire, and water damage remediation vendors approved by your insurance provider.
- Keep a Current Inventory: Maintain an up-to-date inventory of your property, along with pictures and purchase documentation (especially for the most expensive items). This should include furniture, electronics, and equipment. This list will aid your organization in identifying what was damaged or lost. Insurance policies require proper documentation, as well as a sworn proof of loss.
- Keep a Printed Copy of Your Property Schedule Handy: It is helpful to have an itemized list of your covered property for quick reference if you need to submit a claim. Keep in mind you might not have electricity or internet for days, so the old-school paper copy could save the day.
- Review Your Policy Limits Annually: Most property policies require limits of insurance that are adequate and equivalent to the replacement cost of the property. Failure to maintain appropriate limits can result in the application of coinsurance, which is a
penalty that may pay substantially less than the loss amount (as much as 20 to 50% less). Furthermore, most lenders require any collateralized property to be insured to a value equal to full replacement cost which could create a compliance issue over time if not updated. - Understand Your Deductibles: Most property policies apply a separate percentage deductible to storm-related losses (typically 5% in Florida, but some carriers may be as high as 10%). Be familiar with the dollar amount that is your organization’s responsibility and, if possible, create a fund to self-insure all or some of this amount.
- Optimize Your Insurance Schedule: Work with your agent to create the most favorable schedule for you. Most property policies apply hurricane deductibles per scheduled item. For example, if you have three buildings insured with a total value of $30 million, the deductible for a hurricane loss to any one building would be 5% of $30 million, or $1,500,000. If you separate them and insure three buildings at $10 million each, losses to any one building will have a deductible of 5% of $10 million, or $500,000.
- “Property Insurance” Might Not Include All You Think: It’s a common misconception that a standard property insurance policy automatically covers everything on school grounds. In reality, many valuable assets must be specifically listed in your policy to be protected. Failing to do so can result in denied claims after a storm. The following are items often missed:
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- Playgrounds
- Fences and Gates
- Shade Structures (e.g., pavilions, picnic shelters)
- Detached Buildings (e.g., storage sheds, carports, maintenance units)
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If these items are not individually listed, they may not be covered—even if they’re located on the insured premises. Work with your insurance agent to ensure all critical property is properly documented and included.
Be Mindful of any Key Exclusions: Not all property insurance is created equal. In the aftermath of Hurricane Ian, many insurance carriers began imposing limitations on coverage for older roofs with some excluding coverage for roofs beyond a certain age. Others may impose a limit of coverage for wind-driven rain entering the building without damaging the building’s exterior. It’s recommended to review with your agent at every renewal to make sure you’re not compromising coverage for a lower premium.
These simple steps can help ensure that your charter school is better prepared for hurricane season and can recover more quickly in the event of a storm.
For more detailed checklists and guides, feel free to visit the Egis Storm Center: https://egisadvisors.com/storm-center/. Stay
safe and ready!
