Home owners who value the importance of property insurance are bracing themselves for a potential increase in premiums as some people begin to submit their claims in the aftermath of Hurricane Frances.
On Tuesday, several insurance executives told the Bahama Journal that they anticipated a large number of hurricane related claims.
Martin Thackray, claims manager at Bahamas Insurance Brokers and Agents Ltd., said adjusters had already begun to assess the damage caused by the hurricane. According to preliminary reports, there was no major damage sustained to properties in New Providence.
ﾓWe had the opportunity to drive around the island and it doesnﾴt appear to be that much structural damage,ﾒ he said.
ﾓWe are expecting people to be coming in to make claims on their roofs and also if theyﾴve had any damage to the contents of their home such as rain water damage.ﾒ
Increases in premiums are customary following a major hurricane where the claims would have been substantial as a measure to offset the losses to insurance companies. Even before Hurricane Frances, after Hurricane Charley lashed the Carolinas and south Florida in the United States, insurance executives here hinted that there could be potential premium hikes.
Mr. Thackray believes that the increase in premiums could come as early as next year.
ﾓI think the insurance rate would be affected once the re-insurers are fully aware of the ramifications of all of the events,ﾒ he said. ﾓDepending on the overall cost, re-insurers would reevaluate and there could certainly be an increase in premiums [starting] next year.ﾒ
But that decision, Mr. Thackray said, would not be made locally but by officials abroad.
Wanda Smith, underwriter for Mosley Burnside Insurance Agency, told the Bahama Journal that most of their clients in Eleuthera and Freeport received damage to their properties.
But one of the challenges the company presently faces is getting adjusters to those islands as airline flights are operating on a limited basis and communication is difficult.
ﾓWe are unable to determine the extent of the loses there because we canﾴt make any telephone contact,ﾒ she said. ﾓWe are also attempting to fly some officers to assist with the damage assessment.ﾒ
Meanwhile in New Providence, Ms. Smith said the telephones at the office were ringing constantly with persons making claims enquiries.
ﾓThere are a lot of persons walking in and filling out claim reports,ﾒ she said.
Another insurance underwriter Denise Ferguson advised insurers to read their contracts as many people, become angry ﾠwhen they receive their insurance deductibles.
ﾓThere is a two percent deductible on all hurricane related insurance,ﾒ she said. ﾓDamage such as a $3,000 claim made can only receive about ﾠ$500.00 and when most persons hear this they would get upset, but itﾴs in the contract.ﾒ
The Bahamas Insurance Brokers Association noted recently in a press statement that after Hurricane Andrew in 1992, both the availability and the cost of property insurance in The Bahamas were dramatically affected.
It is always prudent to err on the side of caution and prepare for the worst, the BIBA statement said.
After Hurricane Michelle in 2001, the local insurance industry paid out well over $100 million in total claims, according to official figures
Yvette Rolle-Major, The Bahama Journal
