The role of insurance brokers and agents has changed significantly in the last decade. In times of hurricanes and floods, agents have moved from risk-reduction professionals to life-changing providers of resources that help and reassure clients.

Hurricanes Helene and Milton made it clear that hurricanes, storms and floods can happen anywhere and anytime and are not limited to the coast. So, what can we do to be better prepared for and respond to these events?

Coverage for Storm Damage

Typically, there are two forms of personal lines insurance related to hurricanes or severe storms: a standard homeowners property & casualty policy that includes storm and windstorm coverage and a separate policy for flood or stormwater coverage.

Notably, most standard homeowners policies include wind coverage. However, depending on the location, risk and carrier, the policy may also feature a “named storm endorsement" that decreases wind coverage and increases deductibles, inspiring some homeowners to add a second policy to cover any gaps. It's important to check clients' policies for named storm endorsements because some carriers will exclude wind.

Flood or stormwater coverage may or may not be included in routine homeowners policies. For example, water that is meant to stay outside the property—such as water from nearby bodies of water or storm surge—is typically not covered. Water that is supposed to stay inside the property—like water from a burst pipe—will usually be covered.

If homeowners want flood coverage, they must purchase a flood policy through a private insurer or through the National Flood Insurance Program (NFIP) sponsored by the Federal Emergency Management Association (FEMA).

While the NFIP may seem like a lifesaver, the truth is that agents and brokers must now act like financial planners and review the overall financial budget required to weather a storm.

For example, FEMA's flood program and policies do not include additional living expenses if a client needs to relocate during post-storm repairs. It's one thing to ask a client to decide between an expensive flood policy that provides additional living expenses versus a FEMA flood policy that does not. But explaining the real costs of renting a three-bedroom home at $3,000 or more per month while still paying their original mortgage is a scenario that should be explained.

Disaster Planning

Agents should help clients form a disaster plan. Having a disaster plan in place may seem trivial or an afterthought for your insureds, but it's something they should prioritize. Agents also need to take preparedness seriously and follow through for the sake of your clients, their loved ones and your business.

When a storm is approaching, people will run to the grocery store for bread and milk. But this is also the time to make sure you have other resources in place. Who is their plumber? Electrician? Tree guy? They should have this information at hand.

What about mortgage forbearance and price-gouging post-storm? Monitoring the National Weather Service, Mike's Weather Page and the National Hurricane Center for storm updates can help manage the anxiety of information overload and manage expectations.

After a storm hits, the first thing to do is check on you and yours. Make sure you're okay before helping others. Beyond that, you need to quickly assess the damage. Injuries and property damage should be triaged and the worst cases will be handled first.

It's also critical to remind insureds to document the damages after a storm. Encourage them to take pictures with their phones, especially of emergency purchases—adjusters will need that documentation. Clients should also take photos and videos of their personal assets as part of their disaster plan and save the images in the cloud.

Also, disaster plans are living documents. As needs change, your clients' coverage should also be reviewed regularly and evolve with their circumstances.

Clayton Matthews leads the claims department at Oakbridge Insurance, a Lloyd's syndicate for coastal property with a business specialty in working with homebuilders through its nearly 50-year-old national Webber Homebuilders Program.