After the Storm - How to Prepare for a Catastrophe
 
Center for Risk Management and Insurance Research Offers Valuable Advice

August 30, 2005 (Atlanta) -  Hurricane Katrina may be the most expensive hurricane ever to hit the United States and could cost insurers as much as $25 billion, according to Dr. Robert Klein, director of the Center for Risk Management and Insurance Research at the J. Mack Robinson College of Business. Each year, residents along the coastal areas of the country brace themselves for possible catastrophe. In the wake of Katrina's devastating losses, Klein offers the following advice that can help prepare homeowners for future catastrophes: Check your insurance policy to make sure that your coverage is adequate - people sometimes fail to increase the limits on their policy even though the replacement cost of their property increases, especially if they have made improvements. Make an inventory of your personal property and make sure high-value items are sufficiently covered. Policies contain internal limits on certain types of items (e.g., computers, jewelry, etc.) and it may be necessary to specifically "schedule" certain high-value items to make sure they are covered. Familiarize yourself with the deductibles and exclusions on your policy so you are not surprised when you file a claim. Remember that homeowners insurance policies do not cover losses from surface water/flooding or earth movement. People who live in a designated flood zone should purchase flood insurance. Even if you do not live in a designated flood zone you may want to assess your vulnerability due to outdated flood zone maps and other contingencies. For example, storm drains may have become degraded or clogged, leading to localized flooding for an area that is not in a designated flood zone. Install storm shutters that can be quickly closed and secured. A home can be retrofitted with "roof straps" that will make it less likely that a roof will be blown off and expose the interior to damage. Try to close or eliminate any openings where wind can penetrate a structure - when that happens severe damage is much more likely. Secure or remove objects in your yard (e.g., lawn chairs) that can become projectiles in high winds. It is also possible to construct special "reinforced" areas where a family can take refuge in the event of high winds or a tornado. There are companies that specialize in designing and constructing these storm shelters. Contact: To schedule an interview with Dr. Klein, please contact Tammy DeMel at 404/413-7078 tdemel@gsu.edu