Insurance For Hawaii Natural Disasters Wednesday, August 26 1 - - PowerPoint PPT Presentation

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Insurance For Hawaii Natural Disasters Wednesday, August 26 1 - - PowerPoint PPT Presentation

Dec 14, 2023 97 likes •483 views

Insurance For Hawaii Natural Disasters Wednesday, August 26 1 Moderator Webinar Topics Hurricane: Todd Tamori Earthquake: Justin Salgado Flood: Corina Hill Kimberli Sakamoto Q&A: Shane Choi Senior Sales Account Manager

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Insurance For Hawaii Natural Disasters

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Wednesday, August 26

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Kimberli Sakamoto

Senior Sales Account Manager

ksakamoto@atlasinsurance.com

Webinar Topics

  • Hurricane: Todd Tamori
  • Earthquake: Justin Salgado
  • Flood: Corina Hill
  • Q&A: Shane Choi

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Moderator

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Housekeeping Rules

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LISTEN MODE ONLY FOR PARTICIPANTS QUESTIONS WILL BE ADDRESSED AT THE END DURING Q&A SUBMIT ALL QUESTIONS VIA THE CHAT FUNCTION

Please contact infohawaii@atlasinsurance.com for any individual personal policy questions

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Hurricane Insurance

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Todd Tamori

Personal Lines Sales Manager

Email: ttamori@atlasinsurance.com

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When is Hurricane Season?

Hawaii Hurricane Season runs from the beginning of June to the end of November

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Hawaii Hurricane Damage

Hurricane Iwa (1982)

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Hurricane Iselle (2014) Hurricane Iniki (1992)

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Hurricane Categories

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Distinguishing Coverage

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Home Insurance Hurricane Insurance

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Window of Hurricane Coverage

Hurricane Insurance coverage is applicable for wind damage that occurs from the time a Hurricane warning has been implemented through 72 hours from the time the warning is lifted.

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Hurricane Warning Issued Hurricane Warning Lifted 72 Hours After Warning Lifted

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Insurance Rating Factors

What are the main factors that determine how much hurricane insurance cost?

  • Year Built
  • Construction type

– Superior frame: Wood frame homes built 1994 and newer as there was a change in the building code to require hurricane clips and straps.

  • Property Location

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Carrier Variance

Framing Type Carrier A Carrier B Carrier C Superior Frame $420 $415 $410 Double Wall $729 $962 $915 Single Wall $892 $1,841 $1,589

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Single family home in Ewa Beach with $500k Dwelling coverage Single family home in Honolulu at higher elevation with $500k Dwelling coverage Framing Type Carrier A Carrier B Carrier C Superior Frame $5,224 $521 $521 Double Wall $9,077 $1,006 $915 Single Wall $11,327 $1,841 $1,589

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Hurricane Tips For You And Your Clients

  • Know your carrier!

– Rating factors – Combined Home and Hurricane policy or Standalone Hurricane policy – Financial stability

  • Know your coverage!

– Optional coverage (Other Structures, Personal Property, Loss of Use) – The value of Economic Demand Surge

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Todd Tamori

Personal Lines Sales Manager Email: ttamori@atlasinsurance.com

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Hurricane Tips

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Timing of supply and demand

Economic Demand Surge: The increase in the cost of building materials and labor to rebuild the Dwelling Building and/or Other Structures due to an increase in demand in the event of a covered loss.

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Earthquake Insurance

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Justin Salgado

Personal Lines Sales Account Manager

Email: jsalgado@atlasinsurance.com

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Earthquake Insurance

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What is an Earthquake?

“A sudden and violent shaking of the ground, sometimes causing great destruction, as a result of movements within the earth's crust or volcanic action.”

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  • Volcanic: Magma movement within and eruptions from presently active volcanoes in Hawaii

(Kilauea, Mauna Loa, Hualalai, Haleakala and Lo’ihi)

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  • Tectonic: Earthquakes involving slippage along tectonic faults.
  • Minor to moderate earthquakes occur on upper crustal faults beneath and within volcanoes.
  • Large Flank earthquakes occur along the decollement fault which separates the ancient oceanic

crust and the overlying volcanoes.

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  • Mantle: Flexing or bending of the earths crust and upper mantle, known as the lithosphere, due

to the weight of the islands above.

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Earthquakes in Hawaii:

  • Thousands of earthquakes occur every year in the State of Hawaii.
  • Most are so small that they can only be detected by sensitive instruments, known as

seismometers.

  • Some are strong enough to be felt on one or more of the islands. A few earthquakes are large

enough to cause significant damage and impact residents across the State.

  • Since 1868, more than 30 magnitude of 6.0 or greater earthquakes have rattled the islands
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  • In 2006 , Hawaii was struck with a magnitude of 6.7
  • It produced several aftershocks, including one that measured a magnitude of 6.1 seven minutes after the

main shock.

  • The most severe damage caused by the earthquake was focused on the north and western sides of the island
  • f Hawaii. Damage was also quite heavy on the eastern side of Maui, and minor damage spread all the way
  • ut to western Oahu, 170 miles away from the earthquake's epicenter.
  • On the Big Island, many houses had large cracks and broken windows, and at least 61 buildings were

destroyed and red-tagged by officials. Almost all houses in west Hawaii reported extensive internal damage but most avoided significant structural damage, the reason being that most of the buildings in the area around the epicenter of the earthquake have been built in the last few decades and are well constructed. Even so, over $200 million in damage occurred.

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Do I need earthquake insurance?

  • The probability of a destructive

magnitude-6.5 or higher earthquake striking the Hawaiian islands: …

  • in the next 10 years is 50%. …
  • in the next 20 years is 75%. …
  • in the next 50 years is 97%.

Source: USGS Bulletin 2006 (http://pubs.er.usgs.gov/publication/b2006)

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So… It’s not IF a destructive earthquake will strike Hawaii, but WHEN the next one will happen

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Earthquake Insurance

  • Good option to consider for Big

Island clients.

  • It does not cover any residual effect

like tsunami or volcanic eruption.

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  • Earthquake Insurance covers damage caused by the specific event of earth

movement.

  • We have a couple of options for earthquake coverage. A stand-alone policy, with a

starting premium of $1,000

  • r by endorsement with ICat Hurricane coverage, which is a much more favorable

premium.

➢ Matches limits from companion Hurricane policy ➢ % Deductible ➢ Paid as an Annual Aggregate

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Justin Salgado

Personal Lines Sales Account Manager

Email: jsalgado@atlasinsurance.com

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Earthquake Insurance

Hawaii Dwelling A = $500,000 with 2% Deductible

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Maui Dwelling A = $500,000 with 2% Deductible Frame Type Lahaina Hana Single Wall $135 $135 Double Wall $100 $100 Superior $100 $100 Masonry $190 $190 Frame Type Kona Pahoa Single Wall $702 $702 Double Wall $520 $520 Superior $520 $520 Masonry $988 $988

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Flood Insurance

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Corina Hill

Personal Lines Senior Sales Account Manager

Email: chill@atlasinsurance.com

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Flood Insurance

Definition of Flood:

  • a. A general and temporary condition of partial or complete

inundation of two or more acres of normally dry land area or of two or more neighboring properties (at least one of which is your property) from: (1) Overflow of inland or tidal waters; (2) Unusual and rapid accumulation or runoff of surface waters from any source; or (3) “Mudflow”; or

  • b. Collapse or subsidence of land along the shore of a lake or

similar body of water as a result of erosion or undermining caused by waves of water exceeding anticipated cyclical levels that result in a “flood” as defined in a.(1) above.

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Flood Insurance- Flood zones and their definition

The most hazardous flood zones are V (usually first-row, beach-front properties) and A (usually, but not always, properties near water)

V Zones

  • According to FEMA and the NFIP, any building located in

an A or V zone is considered to be in a Special Flood Hazard Area, and is lower than the base flood

  • elevation. V zones are the most hazardous of the

Special Flood Hazard Areas. V zones generally include the first row of beachfront properties. The hazards in these areas are increased because of wave velocity - hence the V designation. A Zones

  • A zones - the next most volatile of the Special Flood

Hazard Areas - are subject to rising waters and are usually near a lake, river, stream or other body of

  • water. A-zone maps also include AE, AH, AO, AR and

A99 designations, all having the same rates. The different A zones are named depending on the way in which they might be flooded Other Zones

  • X zones are minimal-risk areas where flood insurance is

not mandatory.

  • D zones are areas that have not been studied, but

where flooding is possible.

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Flood Insurance

November 2000 Hilo flood

Ka loko Reservoir 2006

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How much damage can 1 inch of flooding cause (on average) to a home? Per FEMA, $27,000 80% of claims filed with FEMA are from X zone properties A new, nationwide flood modeling tool is now available. Research combined existing flood models of sea-level rise and river flooding with simulations of extreme weather events and peer-reviewed projections into a single nationwide flood assessment model This new combined model estimates that over 14 million homes and other buildings throughout the country face a 1 percent annual risk of flooding, about 1 in 10 such real property parcels countrywide. This figure is projected to grow during the next 20 years. In contrast, only 8.7 million properties are identified as high- risk properties in the FEMA flood maps. This new model reinforces what we have known all along— far too many homes across this country perilously lack flood insurance

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Flood Insurance

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Flood Guard vs. FEMA/NFIP

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Private Flood Market: Flood Guard

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Flood Guard vs. NFIP Premium Comparison

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Coverage Amounts: Dwelling $250k, Contents $100k, Deductible $5k

Flood Zone NFIP Flood Guard DIFFERENCE VE $18,667 $5,682

  • $12,985

AE $11,764 $2,708

  • $9,056

D $2,777 $2,708

  • $69

X $516 $463

  • $53

Corina Hill

Personal Lines Senior Sales Account Manager

Email: chill@atlasinsurance.com

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Kaua’i Flood Map Changes 2020

  • FEMA has determined the Waimea and Hanapepe levees on Kaua‘i do not provide a high level of protection and are to be de-
  • accredited. New preliminary flood maps, effective in 2020 show areas behind the Waimea and Hanapepe levees to be in a high-

risk flood zone

  • A property’s flood risk may change and consequently so will the requirement for federally mandated flood insurance, as well as

construction standards.

  • Approximately 400 parcels in Moloaa, Waimea and Hanapepe are having a new, high-risk flood zone designation where these

homeowners with a mortgage will be required to buy flood insurance when the revised flood maps become effective which is currently planned for the end of 2020.

  • Property owners can view the preliminary/proposed maps for Waimea and Hanapepe online on Hawaii’s Flood Hazard

Assessment Tool (http://gis.hawaiinfip.org/fhat)

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Personal Lines Sales Team

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Darnell Aquino Sales Account Manager daquino@atlasinsurance.com Lihue Office Irene Zilisch Sales Account Manager izilisch@atlasinsurance.com Maui Office Corina Hill

  • Sr. Sales Account Manager

chill@atlasinsurance.com Main Office Fe Valinton Sales Account Manager fvalinton@atlasinsurance.com Main office Kimberli Sakamoto

  • Sr. Sales Account Manager

ksakamoto@atlasinsurance.com Main Office Justin Salgado Sales Account Manager jsalgado@atlasinsurance.com Main Office Romela Antonio Sales Account Manager rantonio@atlasinsurance.com Main Office Todd Tamori Sales Manager ttamori@atlasinsurance.com Main Office

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Q&A

with Shane Choi

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Please contact us for a free comprehensive review of your policies

Atlas Insurance Agency Personal Lines Department

infohawaii@atlasinsurance.com

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Thank you!

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