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The following article was published in Your Health Magazine. Our mission is to empower people to live healthier.
Ben Glass, Esquire
How Do Insurance Companies Handle Big Weather Events?
Benjamin W. Glass and Associates
. https://www.benglasslaw.com/

How Do Insurance Companies Handle Big Weather Events?

In light of the large hurricanes that have hit the east coast and Texas, it's worth exploring a few things insurance companies do to handle large-scale weather events and their aftermath.

Virtually everyone knows that hurricanes wreak havoc. Recent events have made this clearer than ever. It's in these moments of distress that insurance companies can prove a valuable resource to families and communities who have wisely protected themselves against the financial demands of widespread loss.

Because these disasters create a significant influx in claims, the companies that insure large portions of the area will need to have all hands on deck. In many cases, the insurance company will pay to fly in adjusters across the state in advance of an oncoming storm. In many instances, the company will also take more specialized and experienced claims adjusters and have them take basic claims reports.

Adjusters will certainly be working longer hours, in and out of the office, than usual. Handling all the inbound calls can be total calamity. Each call is coming from someone who has suffered, possibly profoundly, and they want a quick resolution. The point here is that everyone involved in these events is under a lot of stress and it's remarkable that these events are successfully navigated at all.

The other big concern for an insurance company is the financial hit that these big weather events bring. Big companies insure lots of cars, homes and the like. When those things are damaged en masse, it's super expensive for the insurers to do their jobs. This can greatly diminish the insurance companies' profitability for a quarter or a year depending on the destructive force of the weather event and the amount of property that an insurance company has covered under policies in that area. This has been so profound in the past that some insurance companies weren't able to successfully pay for all the losses that they incurred.

Fortunately, in those situations, other companies have stepped in to help alleviate those issues. In fact, the government now forces insurance companies to hold certain amounts of money aside to cover potential losses in the future. Plus, insurance companies are now often insured themselves, by reinsurers.

Avoiding disasters is often impossible. Replacing the things you cared about with money is never enough, but consider that in those moments it's easier to know that the things you've worked so hard for will be financially compensated for you will sleep a little better.

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