Insurance break this hurricane season

With predictions of an active 2022 Atlantic hurricane season coming at a time of rising cost of living, one insurance company has decided not to increase premiums so that existing and new policyholders can afford insurance.

Co-operators General Insurance Company Limited (CGICL) Chief Executive Officer Anton Lovell said on Tuesday that despite the company facing increasing operational expenses, it will not put any extra burden on customers.

“We have many loyal policyholders, and given the hardships being experienced by Barbadians at this time, we think it is the right thing to do. So, we want to encourage the uninsured to call or visit any branch of Co-operators General and get insured this hurricane season,” he said during a press conference to launch the company’s 2022 hurricane season promotion, at its Upper Collymore Rock, St Michael headquarters.

“Premiums are affordable and payment plans are tailored to suit your pockets. Admittedly, there are some who just cannot afford to pay for insurance coverage for their homes but there are many who just need to prioritise.”

Lovell reported that CGICL paid out over $2 million in compensation to policyholders affected by Hurricane Elsa in July last year. The company received 110 reports.

In that same year, the June freak storm and the ashfall from the erupting La Soufriere volcano in neighbouring St Vincent, in April, also resulted in pay-outs of several thousand dollars.

Lovell added that last year, claimants were concerned about a two per cent deductible for catastrophe perils. However, he explained that formed part of a property policy that was introduced in the market decades ago.

“It is no secret to find that most people are unaware of the deductible because most policyholders do not read their policies. It is not our imposition either. Just like the ordinary policyholder, this company purchases insurance from reinsurers to protect its shareholders and policyholders. The aggregate sums insured of properties we insure, like all other insurance contracts, have terms and conditions,” he said.

Lovell highlighted underinsurance as a concern that surfaced particularly during the processing of Hurricane Elsa claims.

Noting that policies are based on replacement values, he said the sums insured should reflect that.

“For example, if to rebuild your home it would cost $200 000 and you insure it for $100 000 and it is totally destroyed by a hurricane, could a $100 000 pay-out rebuild that home?

“Similarly, partial damages are subject to average. For example, in the same scenario, if you lose your roof only and it is estimated at $30 000 to replace, given that you have only insured for 50 per cent of the value of the house, you would receive $15 000 as settlement. So, clearly it is best to ensure your sum insured is adequate,” Lovell explained.

He said CGICL also recognised that some people do not pay a lot of attention to insuring their homes’ contents, even though they are aware that “when the roof and windows go, the contents within the home [are] automatically damaged”.

Lovell reminded the public that well-maintained timber houses are also insurable and that tenants can insure their possessions in their rental properties.

CGIL has partnered with Channell Supermarket and Infinity on the Beach to execute its promotion, Relax, we’ve got you covered. From June to November, policyholders will get chances to win food hampers and a staycation for two. (AH)