Acentria Insurance Blog

The heavy rainfall, high winds and storm surges associated with hurricanes and other intense storms can devastate any home or business property, even those located hundreds of miles off of a coast. With the potential to cause tens of billions of dollars in damage, insurance companies and carriers generally use special, “named storm deductibles,” to provide coverage in the event of a loss.

Named storm deductibles are typically higher than traditional fixed-dollar deductibles for losses related to fire, theft and even water in some cases. Named storm deductibles are only triggered under specific circumstances and can vary based on location. However, it is important to know the details of these deductibles so your family, your home and even your business are prepared in the event of a severe storm.

What’s in a Name?

Named storm deductibles are triggered by just that—a tropical depression, tropical storm or hurricane that is severe enough to be named by the National Weather Service (NWS).

The NWS first started to name storms to make it easier for the public to track and follow severe storms as they developed. However, after large hurricanes and tropical storms began to cause large amounts of damage, insurance providers began looking for ways to mitigate their losses. Named storm deductibles, tied to the time periods surrounding the National Weather Service-named storms, help insurance providers mitigate losses caused by a named storm.

It is important to note that other organizations have started to name storms. The Weather Channel, a privately owned weather organization, recently began naming winter storms in order to make tracking them easier for its viewers. However, insurance providers only apply named storm deductibles to storms named by the NWS.

The Triggers for Named Storm Deductibles

The triggers for named storm deductibles can vary based on the insurance provider and location, although almost all triggers generally include a timing window, such as 24 hours before a storm is named by the NWS to 48 hours after it is downgraded to a tropical storm. During this window, your named storm deductible will apply to any damage instead of the normal wind and hail deductible.

Other triggers can include when a hurricane makes landfall or when a hurricane watch is declared. Because the triggers for named storm deductibles can vary significantly, it’s important to look up the exact rules as defined by the state you live in and your specific insurance policy.

Price Differences

Named storm deductibles are generally higher than regular deductibles because they are based on a percentage rather than on a fixed dollar amount. Most named storm deductibles are between 1%-5% of your total insured amount, but in high-risk areas, deductibles can reach as high as 10%.

For example, imagine that the Dwelling Coverage A on your home insurance policy is insured for $500,000. If your home is damaged by normal wind or hail loss, you would pay a regular, fixed-dollar deductible—usually $500 or $1,000—before your insurance provider would provide coverage for the remaining damage. However, if the damage was caused during the window of a named storm deductible, your deductible would be calculated using a percentage. For a 5% deductible, this would amount to an out-of-pocket expense of $25,000 before your insurance provider would pay for damages.

What it Means for You

Deductibles for damage caused by named storms are higher in order to mitigate the financial risk to insurance providers while still offering premiums that are relatively low. Additionally, many insurance providers believe that the high deductibles will encourage homeowners and other property owners to take proactive steps to protect their homes from severe storms.

For more information on named storm deductibles, tips to protect your home from severe storms or a review of your current home or property insurance policy, contact us today. 

Structural Issues and Aging Buildings

While modern building codes and structural engineering have made buildings extremely safe, facilities managers must maintain a high level of upkeep for them to remain that way. As buildings age, they can lose their structural integrity. As such, if simple repairs are left untended, they can balloon into bigger issues, potentially causing significant damage that can interrupt operations and/or even endanger others.

Continual maintenance and inspections are imperative for keeping buildings safe and operable. According to the University of Michigan School for Environment and Sustainability, 72% of commercial buildings in the United States are aged 20 years or older. It's around this milestone that facilities managers should expect to prepare significant funds for upgrades.

Structural Issues

Facilities managers need to keep a close eye on all components that make up a building's functionality. While it may seem that structural issues only refer to the foundation and walls, the reality is that all systems within a building must be working optimally to keep the building structurally sound for the long haul. Many structural issues can be attributed to the following:

• Concrete decay—Concrete decay is natural and occurs over time as buildings age. However, several issues can cause concrete to decay prematurely, including:
  • Placement issues—The common signs of placement issues include cracks, air bubbles visible in the concrete, pockets of rocks, honeycombing and cold joints.
  • Exposure—Buildings can suffer from exposure to the elements. Depending on location, coastal ocean salt or rock salt used in winter can increase the rate of concrete decay. Chemical deterioration can also occur as a result of acid rain due to pollution.
  • Wind—Excessive exposure to wind can cause concrete to develop shrinkage cracks and erode the outer building layers.
  • Freeze-thaw cycles—These cycles dampen concrete and cool it before there is time for proper drainage, causing expansion, scaling and delamination.
  • Steel support corrosion—When steel corrodes, it expands to create tensile stresses in the concrete. Cracking, delamination and spalling are often a result.

Decayed concrete should be replaced in a timely fashion. Otherwise, the building could sustain severe structural defects or collapse.

• Roofing—A few factors determine a roof's lifespan, including the type of roof, the climate and the roof’s maintenance history. If the roof is allowed to deteriorate and moisture spreads, other systems will fall apart soon after. Facilities managers should plan to conduct a roof inspection twice a year—once when the weather is at its hottest and once when it's at its coldest.
• Heating, ventilation and air conditioning (HVAC) systems—Inefficient HVAC systems can be costly to operate and cause air quality issues, such as mold. Mold can lead to structural damage since it feeds on and breaks down organic matter. When mold infests in walls, insulation, paper backing or carpeting, the materials must be removed and replaced. Improper heating and cooling can also cause damage due to a lack of efficient air circulation and ventilation.
• Electrical—Hot spots can form if the electrical wiring has loose connections, corroded wires/connectors, overloaded circuits, short circuits, imbalanced electrical loading, or faulty fuses, breakers and switches. The excessive heat from these hot spots could start a fire, and even a small fire has the ability to cause damage that hurts the structural integrity.
• Plumbing—Bad plumbing can cause health risks and have adverse effects on a building and the environment. Leaks can lead to mold and water damage. Some of the significant plumbing issues older buildings face include inefficient fixtures, bad equipment and lead in the pipes, the last of which can contaminate drinking water.

Prevention

Outside of a significant disaster or event, buildings don't typically deteriorate overnight. There are several preventive measures that can be taken to ensure a structure's longevity. These include:

• Hiring a good facilities manager—Facilities managers should know the building better than anyone else and act as the first line of defense by identifying any repairs that need to take place. Having a proactive facilities manager can save money and ensure buildings remain safe to occupy.
• Planning for repairs and maintenance—While setting aside a large sum of money for repairs that haven't happened yet may seem unnecessary, it can be beneficial in the long run when it's time for routine maintenance or when unexpected expenses occur.
• Conducting building inspections—Inspections should be performed by qualified inspectors who have location-specific expertise. Inspectors should be familiar with signs of damage due to local weather, such as areas with saltwater or snow loading. Structural engineers should assess the major structural components of the building to identify any necessary corrective actions. They should document inspections to allow for year-to-year comparisons of issues, being sure to take ample photos. Inspections should occur:
  • Annually
  • After any significant event, such as wind storms, earthquakes or hurricanes
  • Before and after any major addition or renovation
• Knowing local building codes—Building codes help maintain safe and structurally sound buildings. It's essential to know and understand local building codes so that all requirements are met. Some regulations in harsher environments may have additional requirements.
• Acting upon identified issues—When an issue arises, it should be dealt with swiftly. Early action can keep costs lower than if an issue is allowed to become more serious. The safety of those who live or work in the building depends on structural issues being addressed and resolved.

All buildings will need repairs and updates eventually. By being proactive, facilities managers can ensure that the structural integrity of a building and the safety of its tenants remain intact.

For more risk management guidance or a review of your current commercial property insurance portfolio, contact us today. At Acentria Insurance we are your dedicated resource for all things insurance. 

Acentria Insurance named Top 100 Independent Agency in the United States

Insurance Journal recently named Acentria Insurance a Top 100 Independent Agency. Ranking 35th of 100, this marks the first time Acentria has been named to the prestigious list, which is designed to spotlight the nation’s most successful independent insurance agencies. Acentria was one of 11 newcomers to the Top 100 Independent Property & Casualty Agency List by Insurance Journal this year.

Here’s how the process works: every year, Insurance Journal selects the top organizations from a large pool of property/casualty independent agencies around the United States with primary business in business in retail, not wholesale. These agencies are evaluated and subsequently chosen based upon their property/casualty revenue (Acentria totaled $73,807,728 in property/casualty revenue for 2020). 

“Being recognized as one of the top independent insurance agencies in the United States is a major accomplishment for our organization,” said Kevin Mason, Chief Executive Officer and co-founder of Acentria Insurance. “To have maintained and continued our level of growth during unprecedented times, especially around a global pandemic is a true testament to our company values as well as our valued team members. As a Foundation Risk Partners, our clients will always remain our top guiding principal as we continue our upward growth.”

Headquartered in Destin, Florida, Acentria was the only North Florida agency selected to the list. The recognition comes months after five Acentria agents were named to the 2021 Top Producers by Insurance Business America.

 We’re proud of our team’s success in 2020 and look forward to continual growth in 2021!

Unlike physical threats that prompt immediate action—like stopping, dropping and rolling if you catch on fire—cyber threats are often difficult to identify and understand. Cyber threats include dangers such as viruses erasing entire systems, intruders breaking into systems and altering files, intruders using your computer or device to attack others and intruders stealing confidential information. The spectrum of cyber risks is limitless; threats, some more serious and sophisticated than others, can have wide-ranging effects on the individual, community, organizational and national levels.

Before a Cyber Attack

You can increase your chances of avoiding cyber risks by setting up the proper controls. The following are things you can do to protect yourself, your family and your property before a cyber incident occurs:

• Only connect to the internet over secure, password-protected networks.
• Do not click on links or pop-ups, open attachments or respond to emails from strangers.
• Always enter a URL by hand instead of following links if you are unsure of the sender.
• Do not respond to online requests for personally identifiable information (PII). Most organizations—such as banks, universities and businesses—will never ask for your personal information over the internet.
• Limit who you are sharing information with by reviewing the privacy settings on your social media accounts.
• Trust your instincts. If you think an offer is too good to be true, it probably is.
• Password-protect all devices that connect to the internet and all user accounts.
• Do not use the same password twice—choose a password that means something to you and you only. Change your passwords on a regular basis (every 90 days or so).
• If you see something suspicious, report it to the proper authorities.
• The extent, nature and timing of cyber incidents are impossible to predict. There may or may not be any warning. Some cyber incidents take a long time (weeks, months or years) to be discovered and identified.

During a Cyber Attack

Here are some of the steps you should take during a cyberattack:

Immediate Actions

• Check to make sure the software on all of your systems is up to date.
• Run a scan to make sure your system is not infected or acting suspiciously.
• If you find a problem, disconnect your device from the internet and perform a full system restore.

At Home

• Disconnect your device (e.g., computers, gaming systems or tablets) from the internet. By removing the internet connection, you prevent an attacker or virus from being able to access your computer and perform tasks such as locating personal data, manipulating or deleting files, or using your device to attack others.
• If you have anti-virus software installed on your computer, update the virus definitions, if possible, and perform a manual scan of your entire system. Install all of the appropriate patches to fix known vulnerabilities.

At Work

• If you have access to an IT department, contact someone in it immediately. The sooner someone can investigate and clean your computer, the less damage to your computer and other computers on the network. If you believe you might have revealed sensitive information about your organization, report it to the appropriate people within the organization, including network administrators. They can be alert for any suspicious or unusual activity.

• Immediately inform a manager or authority figure in charge. If someone has access to an IT department, contact the department immediately.

After a Cyber Attack

• File a report with the local police so there is an official record of the incident.
• Report online crime or fraud to the Internet Crime Compliant Center (IC3) or the federal government’s internet fraud resource website. Report identity theft to the Federal Trade Commission.
• If your PII was compromised, consider other information that may be at risk. Depending on what information was stolen, you may need to contact other agencies. You should also contact your state’s DMV for transportation if your driver's license or car registration has been stolen.
  
  

In addition to insuring your home, Acentria is committed to helping you and your loved ones stay safe when disaster strikes. If you would like more information on how to protect yourself from a cyber-attack, please contact us at 863.374.5084 or www.acentria.com today.

More About PII

PII is information that can be used to uniquely identify, contact or locate a single person. PII includes but is not limited to:

• Full name
• Social security number
• Address
• Date of birth
• Place of birth
• Driver’s license number
• Vehicle registration plate number
• Credit card numbers
• Physical appearance
• Gender or race

Take these steps if you believe your PII has been compromised:

• Immediately change all passwords, and change your financial passwords first. If you used the same password for multiple resources, make sure to change it for each account, and do not use that password in the future.
• If you believe the compromise was caused by malicious code, disconnect your computer from the internet.
• Restart your computer in safe mode and perform a full system restore.
• Contact businesses, including banks, where you have accounts, as well as credit reporting companies.
• Close any accounts that may have been compromised. Watch for any unexplainable or unauthorized charges to your accounts.

For more in-depth tips on how to protect yourself, your family, and your property before a cyberattack occurs, visit the cybersecurity resources found on Ready.gov.

Are you a business owner interested in speaking with a team member to review Cyber Insurance for your business? We're here to help; contact us to learn more! 

The American Rescue Plan Act (ARPA) includes new Federal mandates that may impact your business and formerly full-time employees.  The new law provides tax credits for the full cost of COBRA or State Continuation coverage for certain individuals.  Employers have requirements to notify qualified individuals of eligibility for the subsidies.  Below is an FAQ related to the new subsidies. 

Who is eligible for the APRA COBRA Subsidies?

Employees that have lost group medical coverage due to a reduction of hours OR an involuntary job loss. The subsidy does NOT apply to: