Insurance in the Eye of the Storm: Hurricane Erin

Although Hurricane Erin never made landfall, the detrimental effects cost lives and taught a critical lesson for insurers and policymakers. The Category 5 storm stayed offshore. The strength of the storm was an important reminder of the dangers that hurricanes pose because they extend beyond the impact zones.  

Impacts of Offshore Hurricanes: 

Hurricane Erin reached level 5, making it one of the strongest storms so far this season. Even though the storm didn’t directly strike U.S. coastlines, it caused severe devastation for many. The powerful rip currents claimed lives across the East Coast. In Cape Verde, the storm separated families and left communities in distraught. These tragic events often get overlooked because people think hurricanes must hit landfall to cause damage. Coastal, stormy, and secondary hazards can all cause claims, making insurance coverage a major safeguard for individuals and families.  

Forecast Signals and When to Expect an Active Season: 

Officials have stated that the 2025 Atlantic hurricane season will be one of the busiest in recent history. Climate conditions are rapid and intense. Storm strength can escalate within hours, leaving individuals with minimal preparation time.  

Insurance Coverage to Review: 

Hurricane Erin reinforced the urgency for homeowners and business owners to review their policies before a storm arrives.  

• Homeowners Insurance: Most policies will cover wind damage, but not always flooding. Getting flood insurance may be crucial for homeowners and companies.  

• Flood Endorsements: Standard insurance policies exclude flood damage, which is often the main cause of losses during coastal storms.  

Lessons from Storms: 

• Storm impacts go far beyond the direct impact area 

• Indirect damage can be just as costly as a direct hit 

• If you're near coasts that are known for flooding damage, investigate private flooding insurance 

• Try and be as prepared as possible, staying up to date with forecasts and updates 

Final Thoughts: 

Insurance isn’t always about protection after a storm; it’s about the before, during, and after. Hurricane Erin was an example of how this preparation does pay off, whether you're a business or a homeowner.  For more information, check out our webpage.