Disaster Safety Blog

Things to know before you go

Whether you're going on vacation for spring break, travel extensively for business or pleasure, have rental property that is unoccupied, or share time between two homes, there are things you can and should do before closing up your house for any real length of time, according to the Insurance Institute for Business & Home Safety.

Adjust Thermostat - One of the easiest things to do, but something easily forgotten, is adjusting the thermostat.

    * In colder climates, don't turn the thermostat off. Instead, lower it to a temperature that's warm enough to keep pipes from freezing but low enough that you are not spending money to heat an empty home. (No lower than 55 degrees.)
    * In warmer climates, high temperatures and humidity can damage furniture or other home contents. In this case, set your air conditioner to 85 degrees.

Protect Plumbing - Both plastic (PVC) and copper pipes can burst. Pipes, water heaters and other appliances can leak, or in freezing weather, pipes can freeze and burst, which can cause major damage in a home left unattended.

    * If you are leaving for an extended period of time, the best protection is to have the water shut off and the water lines drained.
          o Seek the advice of a professional plumber, who can shut off the valve at the water meter and send water outdoors and away from the house or into a basement drain. Once this has been done, the plumber should flush all toilets and drain the showerhead pipe.
          o Shut off the gas to the water heater (or the gas company can do this for you), or turn the temperature control to a "vacation" setting. If your house has a water softener, shut off its supply line.
    * If you choose to leave the water service turned on or will be away only a short while:
          o Make sure all pipes are insulated, especially in a garage or basement next to an outside wall or in crawl spaces and the attic. These exposed pipes are most susceptible to freezing.
          o Heat tape can also be used to wrap pipes. Wrap the tape or cables around water pipes, plug in the cord and the heating element will warm the pipes to prevent freezing. Closely follow all manufacturers' installation and operation instructions.
          o Turn off the water supply to individual fixtures like your washing machine, icemaker, toilets and sinks.
            Flooding often occurs when hoses are worn or ruptured, or there is a leak at the connection.
          o Don't leave appliances (dishwasher, washing machine or dryer) running when you leave, and check to make sure toilets aren't running. As an extra precaution, unplug your toaster, coffee maker, microwave oven, computer and television.
          o Make sure the sump pump is working, especially in late winter or early spring when melting snow or heavy rain increases the risk of basement flooding.

Plan for High Wind - If you're going to be away during a season that brings high wind, protect your property:

          o Trim dead limbs from trees and shrubbery and store outdoor furniture and other objects that could become damaging missiles if picked up by high wind.
          o Close and lock all doors, windows, skylights and vents to keep out wind and wind-driven rain.

Make Your House or Business Look Occupied - An empty, unsecured property can be a tempting target for thieves and vandals. 

    * Put interior and exterior lights on timers and/or motion sensors. Set the timers on staggered hours to turn lights on and off at different times.
    * Make sure tapered deadbolt locks all installed and in use on entry doors. The taper makes it almost impossible to use a wrench or other tool to twist the lock open.
    * Suspend mail service and newspaper delivery.
    * Install a monitored security system. (Insurers often provide discounts for devices that make a home safer, so consider the financial benefit.)
    * Inform the local police department that your house will be empty.

Disasters and losses reached new highs in 2010, new report reveals

Natural disasters worldwide cost insurers more in property losses in 2010, according to a new report.

The new analysis by Munich Re, a member of the Institute for Business & Home Safety (IBHS), reveals insurers paid $37 billion in claims, which exceeded the 10-year average of $35 billion. This pay out was also considerably higher than the $22 billion of losses in 2009.

The losses were fueled by the 950 natural catastrophes that occurred in 2010, which made the year one of the worst in the 30 years since record keeping began, and exceeded the annual average of 785 natural catastrophic events by 21 percent.

The greatest losses of life and property were the result of earthquakes in Haiti, Chile and Central China; a heat wave in Russia, and floods in Pakistan. Even though the fatalities were highest in Haiti, the insured losses were greatest in Chile with $30 billion in damage because most Haitian properties were not insured.

According to the report, global insurers had high levels of earthquake exposure in Chile because of the lower risks associated with the modern building codes that were adopted and enforced after other earthquakes in that country's history. These codes resulted in lower fatalities and reduced property damage overall.

In Pakistan, rainfall from monsoons between July and September resulted in $9.5 billion in insured damage.

The 2010 hurricane season spared the United States, despite having the highest number of storms recorded in the last 100 years. There were a total of 19 tropical cyclones during the year, making it the third highest in recorded history. Overall, the season was a quiet one for insurers. Still, the unusually high amount of tropical activity has insurers watching for what's next.

In a release, Munich Re’s Reinsurance CEO Torsten Jeworrek said, “2010 showed the major risks we have to cope with. There were a number of severe earthquakes. The hurricane season was also eventful – it was just fortunate that the tracks of most of the storms remained over the open sea. But things could have turned out very differently. The severe earthquakes and the hurricane season with so many storms demonstrate once again that there must be no slackening of our efforts to analyse these risks in detail and provide the necessary insurance covers at adequate prices. These prices calculated by the insurance industry make it possible to assess the economic consequences of these otherwise difficult-to-evaluate risks.”

Find effective ways to reduce the risk of your home or business being damaged by a natural disaster and maintenance information at www.DisasterSafety.org.

Natural disasters cost reinsurers $20 billion in 2010, report says

Earthquakes in Chile and New Zealand topped the list of costliest disasters for reinsurers in 2010, according to a new report.

The new report by Guy Carpenter & Company, an affiliate member of the Institute for Business & Home Safety, found the reinsurance industry paid $8 billion in losses associated with the Chilean earthquake, while the New Zealand earthquake carried a price tag of $4 billion in insured damage.

Of the eight natural catastrophes that individually caused insured losses of more than $1 billion, five were related to severe weather and storms in the United States, Australia and Europe, for a total loss of $7.9 billion, according to the report. The Deepwater Horizon oil rig explosion in the Gulf of Mexico was the only man-made event to result in insured losses of $1 billion or more in 2010 at approximately $3.5 billion.

Guy Carpenter also reports that reinsurance losses in the United States generally matched those of 2009, totalling $11.2 billion in the first nine months of 2010. This was a decline from the $25.2 billion paid by reinsurers in 2008, due mostly to losses from Hurricanes Gustav and Ike.

Limiting exposures to natural disasters such as hail, high winds, hurricanes, wind-driven water and wildfire is the goal of the new IBHS Research Center, of which Guy Carpenter is a founding member. Learn more about this unique, world-class facility.

Disaster-related insured losses continued climbing trend in 2010

Year end figures for insured catastrophe losses worldwide are emerging from leading firms, most recently including Aon Benfield and Swiss Re, which agree disaster-related losses are on the rise.

Aon Benfield, an affiliate member of the Institute for Business & Home Safety, reports in its "Annual Global Climate and Catastrophe Report" that "global natural catastrophic activity was far higher than in the previous three years, with 314 separate events." The report tallies overall economic losses at $252 billion and insured losses at $38 billion. This is an increase from 2009, when there were 222 events that resulted in $58 billion in economic losses and $20 billion insured losses.

Aon Benfield's tally is a slight increase from one recently released by Swiss Re, which put total economic losses at $222 billion and insured losses at $36 billion.

Regardless of the dollar figure, there is little doubt the costliest disaster of 2010 for insurers was the earthquake in Chile, which resulted in insured losses of $8.5 billion. In terms of economic losses, flooding in Pakistan topped the 2010 list of events with a price tag of more than $30 billion.

One effective way to reduce disaster-related insured and economic losses is to take a communitywide approach to mitigation. Through the new IBHS Research Center and its other options, IBHS is working to develop cost-effective retrofit options for existing properties, new construction solutions and to push for the adoption and enforcement of strong, modern building codes. These types of codes were credited for reducing insured losses in Chile, which adopted modern codes to reduce earthquake damage. Read more about IBHS public policy efforts.

Reducing property losses promotes healthy insurance market, says IBHS

More than two years after Hurricane Ike devastated parts of Texas, many home and business owners are still recovering. So is the the Texas Windstorm Insurance Association (TWIA), the state's insurer of last resort for windstorm coverage.

Today, Texas lawmakers will begin considering how to fix TWIA, which is still paying out millions of dollars in claims to victims of Hurricane Ike, the Texas Tribune reports. A joint House-Senate panel created by a 2009 bill will look at ways to restructure the program, which could include limiting the availability of insurance.

Reducing the risk of property damage due to hurricanes, hail storms and other natural disasters is one way to ensure a healthy insurance market, says Julie Rochman, president and chief executive officer of the Institute for Business & Home Safety. Finding effective ways to reduce losses was the motivation behind opening the new IBHS Research Center. See the Grand Opening Wind Demonstration Tests conducted this fall at the lab.

"Property insurance is one of those areas where loss costs continue to be through the roof," Ms. Rochman told Insurance Journal. "With investments being what they are today, the way to get to profitability, the way to keep a robust, healthy private insurance market is to lower losses. And that's what we're going to try to do [at the IBHS Research Center] is save the industry — and therefore our policyholders —millions of dollars in natural hazard losses every year."

Rochman, a former exec at the Insurance Institute of Highway Safety (IIHS), knows firsthand the impact of such research. The IIHS — a similar, industry-funded organization to IBHS - tests cars for safety and damage resistance and is a major player in getting carmakers to optimize life-saving and claims-reducing features.

IBHS already offers homeowners an alternative to traditional construction through its FORTIFIED for Safer Living^® new construction program, which was battle-tested by Hurricane Ike in Texas. Read more about how well FORTIFIED homes performed in hurricane conditions in the IBHS report "Hurricane Ike: Nature's Force vs. Structural Strength."

Severe weather leaves trail of damage in three states

A line of severe weather raced through Mississippi this morning. And as it did, it brought damaging winds and rain to the region, which was decimated by a line of tornadoes that killed 12 people in April.

Below is a list of Mississippi counties where storm damage was reported to the Mississippi Emergency Management Agency, according to WDAM News. When repairing storm damage, consider following the guidelines offered by IBHS' FORTIFIED for Existing Homes™ program - it's the best way to avoid building over and costly repairs the next time storms roll through your area.

Attala: Several mobile homes damaged, six people injured. Power outages reported and roads are currently being cleared of debris.

Leake: Three structures damaged. Power outage reported in Thomastown area.

Monroe: Several homes damaged and eleven reported injuries. Radio communications tower damaged, MEMA has sent a mobile communications unit to assist.

Oktibbeha: Reported damage to homes and injuries in the Starkville area. Trees and power lines down throughout the county.

Yazoo: Structural damage to several buildings in the downtown Yazoo City area. Buildings were heavily damaged in downtown Yazoo City, where workers rushed to repair traffic signals near the courthouse square Tuesday morning.

In central Louisiana, a tornado destroyed a brick house and damaged three other homes near the town of Atlanta as a front with thunderstorms moved across the region from Monday into Tuesday. No one was hurt, the Winn Parish sheriff's office said.

The Lake Pontchartrain Causeway near New Orleans was closed for a time because of high winds. About 1,300 people in the city's central business district lost power, but it has since been restored.

Winds gusting to near hurricane-force in Alabama knocked down trees and prompted some schools to cancel or delay classes.

Alabama emergency management officials said a possible tornado toppled trees and power lines in Lamar County near the Mississippi line Tuesday morning, and winds estimated at near 70 mph blew a vehicle off Corridor X near Cordova in Walker County.

Steps to protect your business from winter weather

If you own or operate a business, you know every penny counts. Reduce the risk of property damage putting a damper on profits this winter by taking a few simple precautions from the Institute for Business & Home Safety (IBHS). .

At Closing Time

Adjust the Thermostat -
In colder climates, adjust the temperature to 55 degrees before closing. This will keep the pipes from freezing.
In warmer climates, adjust the air conditioning to 85 degrees before closing to protect against humidity and potential mold exposure.

During Holiday Closures

Protect Plumbing -
Unless the building has a fire protection sprinkler system, shut off the water and drain the water lines before you close for the holidays.
Shut off the gas to the water heater, or turn the temperature control to a very low or “vacation” setting.
If the building has a water softener, shut off the supply line. Unplug or turn off any non-essential appliances, boilers or machinery.

Prevent Water Damage -
If you choose not to shut off the water, inspect for leaks and turn off the water supply to individual fixtures.
Unplug appliances and ensure any sump pumps are working properly.
Insulate pipes in colder climates.
Consider installation of an electronic leak detection system, either local or monitored.

Routine Maintenance

Prevent Leaks -
Check the roof for loose or missing shingles or needed repairs.
Make sure gutters are cleaned out, downspouts extend away from the foundation, and splash blocks slope away from the building.
Caulk seams and cracks
around all pipes where they exit roofs and exterior walls, flashing seams between the roof and siding,
door and window frames, and any vents or antennae.

Plan for Rain, Hail and High Winds -
Trim dead vegetation around the building.
Bring inside any exterior furniture or fixtures indoors.
Close and lock all doors, windows, skylights and vents to keep out wind and wind driven rain.
If appropriate, install storm windows, doors or hurricane shutters.

Find more property protection solutions from IBHS at www.DisasterSafety.org

Record-setting hurricane season spared U.S., meteorologists say

With one day left in the 2010 Atlantic Hurricane Season, meteorologists say it has been one for the record books. The six-month hurricane season officially ends Tuesday.

For the first time in recorded history, 12 hurricanes formed this year in the Atlantic basin without a single one making landfall in the United States, experts at Colorado State University told USA Today.

"There was only a 2% or 3% chance of getting this many hurricanes and not having one hit the U.S.," according to the newspaper's interview with Colorado State's William Gray, who has been making annual forecasts since 1984.

Other places were not as fortunate. Tropical storms and hurricanes killed more than 250 people in the Caribbean and Central America this season, the Associated Press reported. The deadliest storms were Tropical Storm Matthew, Hurricane Tomas and Hurricane Alex.

According to the National Hurricane Center in Miami, 19 named storms — tropical storms (which have sustained winds of at least 39 mph) and hurricanes (74 mph) — formed this year, including the 12 hurricanes. Five of the hurricanes were major, a Category 3 or higher, with wind speeds of at least 111 mph. See what a Category 2 storm can do to a wood-frame house constructed to traditional Midwest standards. This type of construction was part of a series of recent demonstration tests at the IBHS Research Center, where property protection solutions will be developed and tested to help reduce the risk of hurricanes and other disasters damaging homes and businesses. 

An average hurricane season sees 10 named storms, of which six are hurricanes and two are major hurricanes. Since 1944, only two other years had as many named storms: 1995 had 19 storms, and 2005 had 28.

Forecasters predicted an extremely active hurricane season in 2010. In June, Colorado State's team of Gray and Phil Klotzbach had predicted that 18 named storms would form, of which 10 would be hurricanes. Colorado State will come out with its first seasonal prediction for 2011 on Dec. 8 and other forecasts will follow in the coming months.

Regardless of how many hurricanes are forecast to hit the U.S., the Institute for Business & Home Safety (IBHS) reminds property owners that it only takes one storm to cause major damage. Is your property FORTIFIED against damage?

Are you a mitigationite?

Do you look around at the images of devastation broadcast so widely - and unfortunately, so frequently - these days on the 24-hours news cycle and think "why did this have to happen?" If you're like us, you don't understand why everyone doesn't see the simple, obvious benefits of everyone having a strong, safe place to call home or a business to go back to when disasterous conditions improve.

At IBHS, we want effective mitigation everywhere across the country, and for everyone, regardless of the value of their assets. We know that those assets – which are homes and businesses in the IBHS world – deserve protection. As do the families, businesses, and communities attached to those assets. We can’t understand why everyone doesn’t see the world the way we do, because we know with certainty that if mitigation was truly a core public value, the world would be a much safer, better and happier place.

Maybe you are one of us “Mitigationites.”

Join us and celebrate a FORTIFIED Nation, where strong structures make strong communities. Find out more - www.DisasterSafety.org/conference.

Experts weigh in on best ways to address commercial risks

Small and mid-sized businesses are the backbone of the nation’s economy, but many also operate on tight budgets and time schedules – even a minor interruption is enough to cause major disruptions. Join IBHS Business Resiliency Program Manager Diana McClure and a panel of business experts at “FORTIFIED Nation: Strong Structures, Strong Communities” – this year’s IBHS Annual Conference on Nov. 16 & 17 in Tampa, Fla. The distinguished panel includes RIMS Director of Strategic and Enterprise Risk Practice Carol Fox; Tim Lovell, Executive Director of Tulsa Partners in Oklahoma, and Paul Ford, Director of Safety and Security for Tampa General Hospital in Florida. Panelists will discuss best practices for protecting business operations against costly disruptions and property losses.

The IBHS conference will be held at the Renaissance International Plaza Hotel in Tampa, Fla., which is minutes from Tampa International Airport and provides complimentary transportation to and from the airport. IBHS is pleased to have negotiated an affordable hotel rate for this beautiful property located in the heart of Tampa’s business, shopping and entertainment district. View the agenda, find hotel information, and register today at www.DisasterSafety.org/conference.