Brokers urged to prepare clients as Tropical Storm Francine approaches Gulf Coast

Brokers urged to prepare clients as Tropical Storm Francine approaches Gulf Coast | Insurance Business America

Catastrophe & Flood

Brokers urged to prepare clients as Tropical Storm Francine approaches Gulf Coast

Wind, flood, and vehicle damage coverage will be integral

Catastrophe & Flood

By
Kenneth Araullo

As Tropical Storm Francine approaches the Northern Gulf Coast, insurance brokers are urged to advise their clients on the potential risks and impacts of the storm, which is expected to make landfall on Sept. 11.

The Insurance Information Institute (Triple-I) has reported that Francine could intensify into a hurricane before making landfall, affecting areas from Texas to the Florida Panhandle. Brokers should ensure that clients, particularly those in these regions, understand the importance of being prepared and having the right insurance coverage.

Francine will be the fourth hurricane of the 2024 Atlantic season and the third tropical cyclone to make landfall in the US this year. Previous storms, including Hurricanes Beryl and Debby, have already caused significant disruptions.

With Hurricane and Storm Surge Watches in effect for parts of Louisiana, and flash flooding warnings extending from Texas to Mississippi, brokers were also called on to be proactive in reaching out to clients about their coverage and potential risks.

Phil Klotzbach, a senior research scientist and non-resident scholar at Triple-I, noted that Francine is expected to rapidly intensify as it approaches the coast.

“The storm will also be a heavy rainfall producer with estimates of 4-8 inches for the Southern Texas and Far Upper Texas Coast, as well as the Louisiana and Mississippi coastlines with totals up to 12 inches possible,” Klotzbach said.

The National Hurricane Center has issued warnings about the risk of flash flooding from the Mexico-Texas border to Southern Mississippi. This flooding risk extends into the Mid-South, with urban areas potentially affected as the storm tracks north after landfall.

Reminders for brokers ahead of Francine

Triple-I called on brokers to remind clients that wind damage is typically covered under standard homeowners, renters, and business insurance policies. However, flood damage is not covered by these policies and requires either a FEMA National Flood Insurance Program policy or a private flood policy.

Clients should review their flood insurance coverage, especially those in high-risk areas.

In addition to property coverage, brokers were also urged to discuss the potential impact on private passenger vehicles. Damage caused by either wind or flooding is covered under the optional comprehensive portion of an auto insurance policy.

With approximately 80% of US drivers opting for comprehensive coverage, brokers should ensure their clients are aware of this option and have the appropriate coverage in place.

Brokers should also encourage clients to take practical steps to prepare for the storm. The Triple-I recommends reviewing evacuation plans, gathering a two-week supply of food, water, and medications, and ensuring outdoor items like furniture and planters are secured to avoid damage from high winds.

Clients should also have the contact information for their insurer and insurance professional readily available in case of a claim, and they should review the details of their policies to ensure they understand their coverage.

Francine is expected to bring significant wind, storm surge, and flash flooding as it moves inland. The storm’s impacts may extend from the Gulf Coast to the Midwest, with flash flooding risks potentially affecting urban areas well beyond the landfall zone.

“Stay informed,” Louisiana commissioner says

Louisiana Insurance Commissioner Tim Temple also put out a notice urging residents to prepare for the potential impacts of Tropical Storm Francine.

“All Louisianans should stay informed and take necessary precautions as this storm approaches,” Temple said,

He recommended preparing properties by trimming trees, purchasing essential supplies, and creating a home inventory.

Temple also stressed the need for residents to have an evacuation plan in case their area becomes unsafe.

“And be insurance ready, which means review your policy, discuss potential out-of-pocket costs with your agent and keep their information handy in case you need to file a claim,” he said.

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