Insurers Prepare For Hanna, As Ike Looms As Bigger Threat

Insurers advised customers along the East coast to be prepared for a swipe from Tropical Storm Hanna, meanwhile a catastrophe modeler forecasted that Hurricane Ike may be a bigger concern by next week.

Several insurers issued statements today advising their customers that they are prepared to respond to policyholder’s claims reports resulting from a series of tropical storms that are lined up in the Atlantic and aiming for the East coast.

Liberty Mutual Group’s regional companies, Ohio Casualty and Montgomery Insurance, said customers in Delaware, Georgia, Maryland, North Carolina, South Carolina, and Virginia need to be ready with an emergency plan that includes evacuation route, supplies, protection of essential documents, contacts and home preparation.

“Families and businesses that are in storm-prone areas really should have procedures in place to secure their properties and get out of harm’s way if need be,” said Mark Anderson, vice president of field claims operations for Liberty Mutual. “Once you’ve developed a checklist, prepared an emergency kit, and an inventory of personal property, getting ready for severe weather becomes second nature.”

“Claims reported by our customers will be assessed quickly to assure fast and quality service,” said Ken Enscoe, Nationwide’s director of catastrophe claims operations. “It’s important for us to prepare early and be ready to act quickly for our customers.”

Joe Thomas, GEICO regional vice president, said his company “urges policyholders to take all necessary steps to protect their families, their homes and their vehicles prior to the storm, and reminds all residents to heed state warnings.”

An insurance carrier association expressed equal concern, advising consumers to be prepared as the storms approached.

“As the southeastern states brace for Tropical Storm Hanna, property owners should be sure to take basic precautions to protect families and homes,” said David Sampson, president and chief executive officer of the Des Plaines, Ill.-based Property Casualty Insurers Association of America.

“Residents are strongly encouraged to follow the advice of local officials, and anyone who may be ordered to evacuate should be prepared to report claims to their insurer as soon as it is safe to return to their homes and businesses and assess the damage.”

According to the National Weather Service, Hanna could intensify into a hurricane before landfall sometime late tomorrow or early Saturday. The storm is expected to hit the coast, possibly a Category 1 hurricane on the Saffir-Simpson scale of either North Carolina or South Carolina and move up the East coast through New England over the weekend.

However, it is Hurricane Ike that can pose a greater threat. The National Weather Service says the storm is currently a Category 4 hurricane with sustained winds near 140 mph. The National Weather Service says it is too early to know what land areas might be affected.

Weather models, said Steve E. Smith, president of Property Solutions, Carvill ReAdvisory in Chicago, are generally calling for Ike to remain a major hurricane as it approaches the Bahamas by early next week.

“Ike must now be considered a significant threat to the Southeast U.S. coast with high potential for Ike to make landfall somewhere from Miami to the Carolinas as a major hurricane during the middle of next week,” he said in a statement.

Ike is the third major hurricane of this season, he noted.

Tropical Storm Josephine, with sustained winds at 50 mph, is the 10th named storm of the season. It is moving West-Northwest at 10 mph and is expected to remain in the Atlantic through Sunday. Little change in strength is expected over the next couple of days, the National Weather Service said.