Quake relief Insurer offering disaster insurance in Hawaii ADVERTISING By Bobby Command West Hawaii Today bcommand@westhawaiitoday.com As Hawaii cleans up after the magnitude 6.7 earthquake and flooding from recently heavy rains, state officials are encouraging them to be prepared for
Quake relief
Insurer offering disaster insurance in Hawaii
By Bobby Command
West Hawaii Today
bcommand@westhawaiitoday.com
As Hawaii cleans up after the magnitude 6.7 earthquake and flooding from recently heavy rains, state officials are encouraging them to be prepared for future natural catastrophes.
But many local property owners are unaware of their options when it comes to buying insurance. A recent report issued by A.M. Best Co., estimates only 10 to 15 percent of U.S. homeowners have earthquake coverage and local industry professionals indicate that Hawaii levels are well below those estimates.
At least one broker has been connecting insurance agents and property owners in Hawaii and other states with access to catastrophe insurance.
Poulton Associates Inc. provides flood, earthquake and landslide insurance coverage backed by certain underwriters at Lloyd’s (London) through its Internet-based division InsureCat.com, under the Natural Catastrophe Insurance Program already established in 17 other states.
“In most cases demand for the product has exceeded what we have been able to provide,” said Craig K. Poulton, president of Poulton Associates. “People who do buy our product are enthusiastic about the pricing and coverage but very few people know about it in Hawaii. As a result we have sold very little coverage there, especially when compared to other states.”
Poulton said this is because captive agents and direct writers dominate the Hawaii market.
“Many captive agents in Hawaii have expressed a strong desire to offer the NCIP through our program to their clients, but they are precluded from selling our products by their parent carriers. Apparently, many of their contracts preclude them from even mentioning our product, or even others for that matter, to their clients.”
InsureCat.com is the nation’s only Internet-based distribution system that allows independent insurance professionals to access this catastrophe insurance electronically, while InsureCat.Biz allows captive agents and consumers to secure the same kind of coverage. Acquiring this kind of policy once took weeks, but with the Internet it can be done in as little as 20 minutes if the risk is accepted by the underwriter.
“Because standard property insurance policies do not provide coverage for flood, quake and landslide our ability to offer up to $5 million worth of coverage per risk is very significant for Hawaii since many people feel underinsured using the government’s National Flood Insurance Program which allows for only $250,000 worth of coverage for residential properties and $500,000 on business properties,” Poulton said.
The program also allows the policy owner to select additional types of coverage not usually offered, such as additional living expenses for homeowners, Poulton said. It also allows for loss of income and extra expense coverage for business property owners.
Poulton Associates Inc. is an established insurance broker located in Salt Lake City, Utah, and is licensed in all 50 states. For more information, visit www.insurecat.com.
