Before the Cone: Turn Preparedness into Protection for Your Clients

Atlantic storms are becoming stronger, wetter and more erratic, with impacts increasingly felt far inland. As we enter the peak of hurricane season, experts predict an above-average year marked by rapidly intensifying systems as warmer sea‑surface temperatures fuel faster spin‑ups.

While the Gulf and Atlantic coasts are generally the most affected by tropical storms and hurricanes, the catastrophic rainfall and deadly flooding across the Southern Appalachians from last September’s Hurricane Helene underscores that the greatest danger is not always at the coast.

With more powerful and damaging storms, coupled with rising reconstruction costs, fewer home and business owners may be carrying enough insurance to protect their properties. For agents and brokers, this changing risk landscape makes it essential to broaden the conversation to prepare clients for the practical realities of potential floods, higher repair costs and longer recovery timelines.

More than 50% of current homeowners incorrectly assume their standard home insurance policies will protect them against flooding incidents. Although prior flood experience is not indicative of future losses, with flood risks rising, it’s even more important than ever that insurance professionals debunk these misconceptions and truly help their clients understand that even one inch of water in a home can cause $25,000 in damage — often uninsured by their homeowners or business property policy.

As Atlantic activity ramps up, now is the time to help clients understand the true value of insurance by outlining their exposure, identifying strategies to mitigate risk, and showing how a reasonably priced flood insurance policy can have a big impact if storm-related flooding occurs. Use these tips to ensure your clients are prepared to weather the storm:

• Map risk accurately. Traditional flood zones don’t tell the whole story. About 40% of National Flood Insurance Program (NFIP) claims come from outside Special Flood Hazard Areas, and fewer than 4% of U.S. households carry an NFIP policy — a sizeable protection gap.
• Address both structure and income/contents. Help homeowners understand what is and isn’t traditionally covered by their homeowner’s policy and what flood policies will insure. For businesses, floods may disrupt operations long after the water recedes; ensure discussions include whether Business Income/Extra Expense is available.
• Explain both NFIP and private flood options. NFIP provides federally backed coverage with set limits and terms. Some private insurers may offer higher limits, additional coverages, or different claims processes.
• Encourage clients to consider mitigation steps to reduce flood risk. This may include clearing gutters and drains, checking grading, and installing backflow valves and sump pumps. Be sure to clarify that mitigation does not guarantee loss prevention and does not replace the need for appropriate insurance coverage.
• Offer “Before the Cone” information to your clients. Use this time to remind clients of storm-related flood risks by sharing checklists, such as this one from TMH. See additional resources below to fit your unique needs.
• Evaluate your carrier partners. Make sure you’re working with a partner that understands your clients’ needs and has the financial backing to survive any storm. Tokio Marine Highland combines decades of flood underwriting expertise with the financial strength of Tokio Marine Kiln, a leading Lloyd’s syndicate. Our deep market knowledge and proactive claims support enable us to deliver tailored flood solutions to help your clients manage risk and recover from catastrophic events.

For more information, contact PrivateFloodSolution@tmhighland.com.