What is a named storm? Well, it is a “weather-related event involving wind, that is given a name by the National Hurricane Center."
Secondly, What is the affected property? The affected property can be either on the commercial insurance side or the personal insurance side, and includes physical damage done to property, equipment, autos, and others.
So let’s talk a little bit about what causes restrictions.
Restrictions are put into place depending on where the storm develops or exists. The insurance industry has created what we affectionately call “the Box”. (see below)
“The Box”. Named storms in this area will restrict our ability to obtain and “bind” insurance coverage until the storm dissipates or exits the box.
And depending on where the storm develops – either inside the box, or outside the box and moving in – our ability to bind new business for our clients is restricted. Also, changing existing policies is restricted. Now, these restrictions are lifted once the storm either dissipates or moves outside the box. This should not affect your existing renewal.
So it’s very important to pay attention to developing storms in the Atlantic Basin and understand your coverage. Should you have any questions please feel free to call us and we’ll be happy to answer any questions that you have.