The Impact of Hurricane Ian on the Boating Industry

April 14, 2023 By W3 Insurance

When Hurricane Ian made landfall on Caya Costa Island, Florida on September 28, 2022, it unleashed more than just immediate harm to life and property. Well into 2023, the Florida boating industry is still experiencing lasting changes and challenges brought on by the category 4 storm. “Hurricane Ian insurance” is still a top search phrase on Google, and Florida boat owners and property owners alike are left wondering: How can I properly cover my belongings to protect against damages from such a storm?

The marine insurance sector was drastically affected by Hurricane Ian. Winds of over 155 miles per hour damaged many insured vessels. So many claims were filed after the storm that many insurance companies opted to leave the Florida market, cease writing new policies and/or impose new terms, which may impact future boat policy renewals. This leaves boat owners with fewer coverage options today than they had a year ago. In addition, underwriting requirements are now stricter than before, and homeowners insurance in the Sunshine State is following a similar trajectory.

On the marine side, some premiums have skyrocketed. Boats damaged by Hurricane Ian, essentially broken crafts, bobbed in the surf for months after the storm fizzled. Salvage crews worked for weeks to meet immense demand. Not long after, a large number of used boats started to appear on the resale market “as is.”

What does this have to do with you, and how do you navigate the post-Hurricane Ian insurance marketplace? By understanding the impact Ian had – and continues to have – on Florida boating and related sectors, you can find coverage options that are still available for most vessels.

The following snapshot of the post-Ian insurance market will reveal why it’s more difficult today to find a comprehensive policy.

Hurricane Ian and the Insurance Market

The aftershocks of Hurricane Ian range from the tangible (wrecked vessels and property wind damage) to the intangible (premium rate hikes and fewer marine insurers in the marketplace). Damage estimates from the storm are on par with those of Hurricane Katrina in their brutality, significance, and overall price tag.

This affects consumers in myriad ways. Not only is it more difficult now to secure a policy that protects a boat or a home in Florida, but the policies on offer are now significantly more expensive. Florida homeowners insurance, for example, has undergone rate hikes ranging from 6 to 11% or more..

This affects commercial and residential property owners alike who have no choice but to pay the increased costs. After all, you never know when the next hurricane will form over the Atlantic, aimed for the Florida coastline. It’s imperative to elect insurance before a tropical system exists, because once a storm is identified as a threat, insurers historically will not allow the public to purchase insurance for protection. Going even further to protect themselves post-Ian, some insurers now won’t even offer a new policy for protection once a tropical depression is spotted on the radar.

Meanwhile, the coverage that is available should be closely scrutinized. While it’s possible to secure insurance coverage in today’s marketplace for home and marine vehicles in Florida, policies may carry exclusions for wind and named storms. To ensure that you carry the policy that best protects your investment, partner with an insurance advisor who understands the current marketplace and can offer personalized protection.

Hurricane Ian and the boat resale market

Used boat shoppers beware: Hurricane Ian boats with low sticker prices might be lemons – and they also might be uninsurable. Thousands of boats were damaged as Hurricane Ian swept boats from their moorings and devastated even secure-seeming harbors. Many of these crafts received patch jobs and were put up for sale at cheap prices. Before Hurricane Ian, it was sometimes possible to get insurance for repaired boats if they were carefully vetted for seaworthiness. Today, finding coverage is more difficult than ever before. So many damaged crafts have flooded the marketplace that insurers are wary of taking chances on them.

What about insuring property?

As of February 2023, data from the Office of Insurance Regulation indicated that 40% of property claims have either been stalled or rejected. This makes sense: according to reinsurer Swiss Re, Ian is to blame for $112.9 billion in damages. Only Hurricane Katrina has Ian beat when it comes to losses. Now more than ever before, it’s imperative that you work with an experienced insurance advisor to obtain coverage.

Just a single inch of water from flooding can cause costly damage to your home. Here’s what you need to know
about insuring against damages caused by flooding.

Trust a professional who understands the current insurance marketplace and can find you the best coverage for competitive premiums. Today, that’s no easy task. It takes an insurance advisor’s assistance in order to stay up-to-date with sector changes. Secure a solid policy to ensure you have the right coverage.

Has homeowners insurance been specifically affected?

Hurricanes have the ability to peel off roofs, break windows, and bring forth storm surges that destroy even the most sturdy abode. It comes as no surprise that homeowners insurance has been specifically affected by Hurricane Ian. Even homeowners who barely detected a raindrop from Ian can expect to pay much more for homeowners insurance than ever before.

This truism is because of the massive number of claims filed by homeowners who were affected by the storm. Paying out that many claims is bound to have an effect on future rates, as insurance companies are still scrambling to find the funds to make good on their coverage promises. It doesn’t matter, then, if your area of Florida has never had problems from hurricanes. The state is seen as a high coverage risk, from down in Key West up to Pensacola. And homeowners are going to pay the price.

Specific impacts to the marine insurance sector

There’s good news and there’s bad news. The good news is there’s never been a better time to find a used boat. The bad news is that virtually no insurance company is going to insure a sea craft totaled by Ian, no matter how great the restoration job. Before purchasing a used vessel, though, talk with your marine insurance advisor regarding your coverage options. That way, you won’t be stuck out on the water uninsured.

Deductibles are also steadily increasing, even for new vessels. The bottom line is this: understanding your coverage means avoiding unwanted surprises later. There are fewer companies insuring boats now, and most have changed their policies to reflect the ripple effect Ian continues to have on the insurance marketplace.

Shop for marine insurance wisely. Enlist an ally from W3 Insurance.

Is it safe to boat after Hurricane Ian?

The answer to that question depends on where you are. Certain areas are no longer safe. The hurricane dredged certain waterways and swept debris into others. Caution is always the best option when it comes to avoiding potentially changed seas. Hidden debris is best seen on a viewfinder, which is a handy tool to have on board.

Pollutants also linger in the waterways as a result of Ian. Florida’s Department of Environmental Protection received many reports about oil-slicked waters and more. Untreated wastewater was a common complaint. Aerial views of damage caused by the hurricane can be seen here.

To stay safe, visit the Environmental Protection Agency’s page before heading out on the water. You’ll be able to see updated waterway data and make an educated decision regarding where to navigate next.

Explore the best coverage and rates for your property

Whether you’re seeking homeowners insurance or marine insurance, it’s possible to find the best coverage and rates that meet your unique needs. No amount of scrolling the Internet is going to give you access to the experienced advice you’ll get from the insurance advisors at W3. Contact our team today to take the guesswork out of insurance coverage and get the protection you need. Whether a hurricane hits Florida next year or waits another 100, the W3 team will provide you with coverage that meets your unique needs.

Buyer Beware: Cheap Insurance is Cheap for a Reason

June 7, 2016 By Michelle McKinley

When it comes time to securing insurance for your company, it’s smart to shop around to see what options you have. Everyone wants to save money. But cheap insurance may cost you more than you think.

As is often the case, cheap doesn’t always mean a good deal. Going for the cheapest option without looking into what your plan covers can cost you a lot of money in the long run.

Here are some problems you need to be aware of if you purchase cheap insurance.

Gaps in Coverage

When you pay less, you’re generally covered for less. Compare the coverage from all your quotes to make sure you’ll be covered for all scenarios. You’ll most often find that budget insurance options don’t cover what you need.

High Deductible

If you’re paying a low amount per month for insurance, you might end up paying a lot if you ever need to use it. Make sure you pay attention to the details so you know what it’s really costing you. In a situation where you have to use your insurance, you don’t want to added stress of spending a lot of money to do so.

Low Payout

Some insurance companies have a low cap of what they are willing to pay out in a year. The worst of them are in the low thousands. If you end up in a situation where you need to pay $100,000, your insurance might only cover 1% of that.

Unhelpful Customer Service

If you’re only paying for budget insurance, you can expect cheap customer service. Insurance can be complicated, and having someone at your insurance company to help navigate your problems and answers questions can be a lifesaver.

Unhappy Employees

Cheap insurance passes problems down to your employees. When your business’s health insurance coverage or workers comp doesn’t help your employees to the extent that it should, they are going to come complaining to you. Expect higher turnover and low satisfaction when you purchase cheap insurance.

Are you currently looking for insurance for your company? We’ve put together a guide on insuring your new business.

Voyages to Cuba Bring Uncertainty

October 1, 2015 By Michelle McKinley

Florida boaters should be cautious before making plans to navigate to Cuba.

On September 18, 2015, The U.S. Department of the Treasury released new rules surrounding U.S. travel to Cuba. The administration lifted the prohibition on boating to Cuba and Cuban waters. While the intrigue is enormous, Florida boaters should be cautious before making plans for such a Caribbean voyage. Although the U.S. government has liberalized the rules, there are many unique conditions that should be considered; political risk, crime, navigational limits available on current insurance policies, just to name a few.

The new regulations bring the marine insurance industry into uncharted territory. Insurance companies are not yet offering coverage extensions for destination Cuba. The reasons that the carriers may be slow to respond are as follows:

Conflicting laws and regulations between U.S. agencies
Lack of familiarity with Cuban laws which may govern in civil and criminal matters
Lack of knowledge and limited opportunities for subrogation
Additional expense of sending marine surveyors and claims adjustors
Unknown/adequate repair facilities
Access to repair parts
Towing charges if the vessel had to be repatriated for repair
Technical complications associated with endorsing in force policies
No underwriting data to base rates on

It is uncertain when insurance companies will offer this coverage to the recreational boater. In the meantime, boaters are reminded that property and liability coverage only applies to claims which occur within the navigational limits stated in the boater’s policy. Wallace Welch & Willingham will stay attuned to this situation and will continue to post updates.

Are you Covered for a Business Interruption?

August 13, 2015 By Michelle McKinley

Recent heavy rainfall reminds us that not all natural disasters are brought on by hurricanes. Due to heavy and constant rains, flooding has damaged much of Florida’s roadways. Last week, Governor Rick Scott declared a state of emergency for five counties. This included three bay area counties; Hillsborough, Pinellas, and Pasco.

Damage like this creates an immediate need for all for all companies to take a closer look at their insurance coverage. Would you be sufficiently covered in case of a natural disaster? States like Florida and other coastal locations are particularly susceptible to devastating losses from flooding, tropical storms, hurricanes.

“75% of businesses suffering major property damage are out of business within three years because they did not have a contingency plan or the proper financing to see them through the period of recovery.”

What is Business Income Insurance?

When it comes to managing your property risk, business owners should be concerned not only with a loss to their tangible property but also to their income. Natural disasters, fires, and other insured perils often result in an interruption of the operations of a business, which typically lead to a loss of income. Business income insurance is designed to cover your economic damages when you experience a covered loss that results in a suspension of your business. A suspension of your business can mean either a slow down or a cessation of your business activities. Loss of income is defined in most policies as your net profit as well as continuing expenses, including payroll. Extra expenses that you incur to recover from a disaster can also be covered. You might think of it as disability insurance for your business!

What is Included in a Business Interruption Insurance Policy?

Compensation for lost income if you are no longer able to operate your business due to a disaster-related damage that is covered by your current property insurance policy.
Profits that would have been earned had the disaster not occurred. These numbers are based on previous financial records.
Operating expenses that must be paid even if the business is temporarily closed. Examples are utilities, rent, etc.
Expenses from a temporary location for you to operate out of while repairs are being made to your permanent location.

Business interruption insurance is one of the most valuable policies a business can have, yet it is often overlooked. Contact us today to learn more about this valuable policy.

6 Ways to Protect Your Home During Vacation

May 29, 2015 By Michelle McKinley

A safe home, will leave your vacation worry free.

Florida! The land of vacation destinations! Going on vacation is a great way to relax and take your mind off the daily grind. Don’t let the excitement of an upcoming trip prevent you from securing your home against burglars. Consider the following tips:

Make sure all outdoor lighting works properly. Replace any batteries or bulbs if needed.
Have a friend, family member or neighbor check on the house often and collect mail. Also consider having someone mow your lawn, if necessary.
Place automatic timers on your lights and set them for different times in different rooms. This will give the impression that you are home and doing things in those rooms. Also consider setting a radio to a timer so that thieves are deterred by voices in the home.
Do not leave your valuables such as jewelry, art work or electronics sitting out in plain view. Hide these items in inconspicuous places such as old laundry detergent boxes.
Take a photo inventory of each room of the house before you leave in case there is a loss.
Try not to be too specific when posting about your upcoming trip on social media sites. Exact details will give criminals plenty of information about the perfect time to break in. Resist the urge to “check in” to your vacation destination. Nothing says your not home like a check in from miles away. (This is also a good tip for anytime you are out of the house.)

As always, check to make sure your homeowners insurance coverage is up-to-date before the trip. Contact you W3 advisor if you have any questions about your homeowners insurance.

Night Driving Dangers

October 24, 2014 By W3 Insurance

A little extra caution can go a long way while driving at night

Summer has ended, and while fall and winter have their own pleasures — including camp fires— longer nights mean increased danger on the roads.

You might think you drive just as well at night, but consider this: Even though nighttime driving accounts for just 23% of vehicle miles traveled, more than 50% of fatalities for vehicle occupants 16 and older occur between 6 p.m. and 6 a.m., according to the National Safety Commission (NSC).

Because we’re big advocates for safety at WWW, we thought it would be helpful to take a look at why night driving is more dangerous, and what you can do to decrease that danger.

What’s dangerous about night driving?

Decreased vision. We won’t go into all the biological details, but different parts of the eye (such as iris, pupil and retina) work differently at night. Your peripheral vision is actually slightly improved, but it’s more difficult to focus on objects ahead of you. And traveling between well-lit areas and darker roads creates issues as well.
Driving too fast for your headlights. Depending on vehicle speed and headlight setting, many people “over-drive” their headlights. That means, by the time they see something on the road, it’s too late to stop in time to avoid it.
Impaired judgment. Whether due to drowsiness or the use of alcohol or drugs, it appears that drivers at night often don’t use good judgment. According to the NSC, 66% of fatalities at night involve vehicle occupants who weren’t wearing seat belts.

So what do you do?

Sometimes, there’s no way around driving at night. So here are some tips to help you make a safe trip — whether you’re just running to the store, or you’re headed across town.

Make sure your vehicle’s lights are in good working condition. And not just headlights, but turn signals, taillights, etc.
Avoid speeding. Leave a bigger cushion between you and other cars than you would during daylight hours. Leave yourself more time for the trip.
Be more aware of your surroundings. You shouldn’t be using your phone, messing around with the radio or trying to find something on the floor while you’re on the road anyway — and distractions are even more deadly at night.

Of course, if you’re not comfortable driving at night, the best thing is to avoid it altogether if possible. There’s nothing wrong with asking for a ride from a trusted safe driver or waiting for the sun to come out!

Contact Us!

At Wallace Welch & Willingham we can work with you to make sure you’ve got the coverage you need, while at the same time using all possible credits and discounts to make that coverage affordable. Just give us a call at 727-522-7777. We want to help you meet your goals, and make sure what’s important to you is protected!