This month Hurricane Michael caused widespread destruction on the Florida panhandle, southern Georgia, and the Carolinas, entering as a Category 4 hurricane with 155 mph winds and storm surges of many feet. Now the process of assessing the personal and property losses and rebuilding is beginning. Total losses for property damage and disruption of business are likely to be in the billions of dollars. It will likely take months for power and services to be fully restored, and years to rebuild and recover.

Insurance

Many properties suffered damage from both the high wind and water surge. There is confusion and heartbreak as some property owners may not be covered by their insurance policies, which, in some cases, cover losses caused by wind (and wind-driven water), but not damage caused by “flooding” (defined to include “storm surge”). Some property owners will only receive payment for damage demonstrated to be covered by the wind only, and not subsequent flooding. For example, if extreme wind removes the roof from a building and the policy covers wind damage, then the homeowner is clearly entitled to a new roof. But if the subsequent rain and storm surge, which may not be covered in some policies, damages the inside of the house, that damage may not be covered. There is litigation ongoing concerning insurance coverage for “concurrent” actions of wind and water acting independently, but causing damage. There are lessons to be learned for anybody in a hurricane zone wishing to be properly covered.

Did Climate Change Cause Hurricane Michael?

The consensus from the scientific and, specifically, the meteorological community, is that Hurricane Michael would likely have happened anyway, but reached its extreme intensity because of climate change. The Gulf of Mexico contained much more energy in heat and warm water, than normal for this time of year, making the hurricane more water-intensive and stronger. This also accounted for the speed of its intensification. It was originally predicted to be a low-level hurricane, strength-wise. But in the last couple of days before landfall, it intensified greatly due to the high energy in the Gulf, surprising many residents and prognosticators. This complicated evacuation efforts, as officials did not communicate the true intensity of Michael until the last moments before landfall.

Building to Withstand Extreme Storms – It Can Be Done

It was interesting to see that so many of the homes in the path of Michael were not just torn away, but leveled into little bits and splinters. Yet, in Mexico Beach, one home survived with minimal damage, while neighboring homes were completely destroyed. This NY Times article describes this building: https://www.nytimes.com/2018/10/14/us/hurricane-michael-florida-mexico-beach-house.html?action=click&module=Most%20Popular&pgtype=Homepage   The owners built this home anticipating storms in the future, and built this to withstand such wind speeds (up to 250 mph) and on stilts well above any anticipated storm surge. The building was more expensive than the others in the area, but was obviously worth it given how it needs minimal repair, while the neighboring buildings were completely destroyed.

CCES can help your firm understand and cope with Climate Change better. Contact us today at 914-584-6720 or at karell@CCESworld.com.