Catastrophic Loss Recovery: Case Study

Key Takeaways

• Named-storm deductibles (1-5% of insured value) create significant out-of-pocket exposure during hurricanes.
• Flood insurance is critical even in moderate-risk Zone X areas—storm surge exclusions leave rising water damage uninsured.
• Public adjusters can reclassify damage (flood vs. wind) to maximize covered claims—a $35,000 increase in this case.
• Program redesign after a catastrophic loss closed $202,000 in coverage gaps at an annual cost of $16,000.