Hurricane Katrina Lessons Learned from the Unexpected Angelyn

Hurricane Katrina Lessons Learned from the Unexpected

Angelyn Treutel Zeringue South. Group Insurance Agency Owner Tish Williams Hancock Chamber Executive Director Kimberly P. Wilkerson Assurant Insurance Flood Insurance Company Executive A Focus on Business & Insurance

Lack of communication from the MS Gulf Coast was another major factor. In the days after the storm, the foot of the bridge was a cell phone “hot-spot, ” one of the only places where calls could get out…sometimes. The Bay’s Hwy 90 four- lane bridge was its life-line to the rest of the coast. It was reduced to mere pilings by the storm.

$5. 4 billion Katrina Recovery Package $1 billion in Hancock County ---Ground Zero The only word that came to mind was Hiroshima.

We are a Chamber. We are NOT in the housing business. We are now!

Thousands of homes closer to the beach---like my family home where this baby grand once graced the halls---no longer existed at all.

We are the Chamber. Why are we pushing tourism initiatives? Don’t sit around and wait for someone else to lead the charge.

Insurance Discussion Topics • Insurance Claims Settlements- Replacement cost vs ACV (structure and contents) • Holdback depreciation and recovery, if applicable • Increased Cost of Compliance Coverage (ICC) • Flood map changes; newly mapped and grandfathered • Importance of maintaining continuous coverage • Current state of the national flood insurance program

FOR IMMEDIATE RELEASE: January 30, 2014 Coalition for Sustainable Flood Insurance Commends Senate for Passing Milestone Flood Insurance Measure. Coalition Now Urging House to Act. There are serious challenges created by the Biggert-Waters Act, which threatens to devastate economies across coastal and riverine America.

Current State of the National Flood Insurance Program n Jan 19 – U S Congress will vote on Flood Program Extension n What we need from the National Flood Insurance Program: n n Multi-year reauthorization Needs to n n n Preserve Affordability Increase Opportunities for Community and Individual mitigation Improve the mapping process Improve the claims process Private flood insurance is becoming available with lower cost and broader coverages

Claims Settlements- Replacement Cost vs ACV n Your insurance agent and your adjuster are your best friends to assist you with understanding the complexities of the claims process n Making the claims process easier– make yourself available to meet, be responsive to questions and requests for documentation, understand your coverages n Replacement Cost – assumes you will replace n Actual Cash Value – settlement is reduced by depreciation n Loss of Use – pays for cost to live elsewhere during repairs n Business Income – pays for lost profits and ongoing expenses while your business is shut down n Flood insurance – replacement cost on structure and ACV on contents

Holdback Depreciation and Recovery n Claim settlements may have a “holdback” amount until you provide documentation showing you have replaced the damaged structure or item n Let the claims process work it’s way through. Adding a Lawyer or Public Adjuster to the process causes further delays. You always have avenues of recovery if you are not satisfied with the claim settlement n Follow-up with your adjuster and agent periodically to ensure the claims process is moving along n Adjusters – examiners – brokers – companies --- lots of red tape

Increased Cost of Compliance Coverage (ICC) n Provides flood insurance policyholders additional help to rebuild n Provides up to $30, 000 additional to help cover the cost of mitigation efforts to reduce future flood risk n May be used for elevation, flood-proofing, relocation, demolition or debris removal n Available if structure has been “substantially damaged “ (over 50% of the value of the structure) n Must file a separate ICC Claim and provide a “Notice of Determination” which is available from your community building department

Flood Map Changes--newly mapped & grandfathering n Flood Maps may change and place your home or business into a more hazardous area n Stay engaged in the process n “Newly mapped” – changed from Preferred Zone (B, C or X) to High Risk Zone (A or V) n Change in “Base Flood Elevation” n Your existing home or building may be “grandfathered” if it was built in compliance at the time of construction n Permits taken out prior to the new maps becoming effective fall under the prior map rules

Importance of Maintaining Continuous Coverage n You MUST keep your flood insurance active n Will save you money – newly mapped will keep “preferred rates” after a map change n Will help sell your home or business building in the future because you can “transfer” your policy to a new owner n Flood insurance is required if you have or will get a mortgage n You can’t count on government aid to rebuild n You could get flooded again

General Discussion Topics • Recovery takes much longer than you wish it would – hang in there • Businesses need to get back up and running as soon as feasible but you may need to reinvent yourself • Communication - Continued Communication is Crucial (more resources are constantly becoming available – stay tuned – share info) • Customers – you need your customers! Use the Chamber to get the word out on your location and offerings • Workforce – take care of your workers - take help when offered • Community – Rely on Associations to provide support – grants, etc. • Don’t forget that this is YOUR home – things WILL change – and your Community will become BETTER but it will take time

QUESTIONS? You will build back better.

Bay St. Louis, MS One of the Fastest growing cities in Mississippi • Mississippi’s Hippest Town Thrillist • Best Little Beach Towns Coast Living • America’s Coolest Small town Budget Travel • Top 12 Places you Need to Visit virtualtravel. com • 12 Beautiful Town Bargains Budget Travel • Best Pleasure Seekers Paradise officialbestof. com • 10 Most Beautiful MS Towns Culturetrip. com • Best Place to Retire and the list goes on and on…

We built a bridge and celebrated it with a festival.

The Bay St. Louis Second Saturday Artwalk attracts thousands to the town each year…we held it every Saturday!