Risk Management: Preparing For Hurricane Season (This Is Only A Test)

This is a test of the Emergency Broadcast System. This is only a test. You know what I’m referring to ... the high-pitched tone, followed by the automated voice on your television. Unfortunately, it’s not always a test—and from now until November, a good portion of the country must be prepared for an actual emergency. Why? Because it’s hurricane season.

One of the most important things you should look for when reviewing your policy is windstorm damage. This covers any damage caused by wind and hail and usually is included in a typical package policy. However, some policies have a wind exclusion—if that is the case with your policy, coverage may be found through a state association often referred to as a windpool.

Keep in mind that it is difficult to obtain wind and hail coverage if your salon is located along the coastal proximity of Texas up into Maine. It can be nearly impossible to get an insurance company review your application during this season, so be prepared to be tenacious.

In addition to windstorm damage, flood insurance is a must during this time of year. Refer back to May’s Risk Management article for more information.

Finally, make sure that you are adequately insured in the event of a loss. Review your policy and check your coverage limits and deductibles. You should consider increasing your coverage if your policy doesn’t cover the current value of all the contents in your salon. If you have any questions, contact your insurance agent.

In the event that your salon is hit by a hurricane this season, call your insurance agent as soon as possible. The company will submit a loss form, and an adjuster will be assigned to your claim. That assigned adjuster will visit your property to assess the damage, and the insurance company will issue a special reference number for your claim. This will be the number you refer to in all of your subsequent dealings with them. Most policies suggest that you make emergency repairs to prevent further damage to your salon, but only do so when it is safe. Keep all receipts and take photos of the damage—before and after repair—to submit with your claim.

Insurance Checklist: Before The Storm

• Check your insurance policy to make sure it contains windstorm coverage. 
•  Check to see if you have a flood insurance policy.
• Review coverage limits at your salon(s).
• Determine whether your policy will pay replacement cost or actual cash value in the event of a loss.
• Find out whether your policy will pay for “loss of income” to cover the cost of rent, salaries and other expenses should your salon become inoperable due to a covered cause of loss.
• Create an inventory of all contents and keep it updated.
• Take photos and, if possible, create a video record of your possessions.
• Record insurance policy information.

Insurance Checklist: After The Storm:

• Report any damage to your insurance agent as soon as possible.
• Keep track of the reference number for your claim.
• Make sure that the adjuster assigned to you is properly licensed.
• Make any needed emergency repairs to your salon as required by your policy.
• Hire only licensed and reputable contractors for repair work.

For more information or to get a quick, no-obligation quote, call (800) 844-2101 or visit www.universalinsuranceltd.com.