Claims for damage from the unprecedented occurrence when two hurricanes battered Bermuda in one week are expected to reach just over $7 million for Colonial Group International. Considering the ferocity of both hurricanes, it is a minor miracle and is testament to Bermuda’s good building codes and infrastructure that our Island didn’t fare worse.

The National Hurricane Centre said the twin strike of Fay and Gonzalo last year was the first time two hurricanes were a direct hit to Bermuda in one season, let alone one week. According to the report, the last time Bermuda experienced a similar event was over a ten-day period in 1899 when a category one hurricane passed northwest of Bermuda on September 4, followed by a category three hurricane which passed by on September 13. but these were not direct hits.

To date we have finalised 84 per cent of our hurricane claims. All hands were on deck to deal with the influx of calls and walk-in clients looking to report their damage. We brought in additional claims adjusters from overseas in order to get the damage assessed as quickly as possible — a decision which proved to be beneficial to everyone.

All local insurance companies have reinsurers who need to know how large the potential loss is, and we were able to communicate this to them within a very short time frame which is important — our systems that allow this are sophisticated and robust. You should know if your insurance company has a Business Continuity Plan, and does it work? This can impact how their business runs after a significant event.

After the last significant hurricane, Fabian, in 2003, we put a great deal of effort into informing our clients about the concept of underinsurance and explained the benefits of insuring their properties correctly. As a result of this only about 5 per cent of our total number of claims included underinsured properties — significantly lower than those during Fabian. This means that the majority of our clients who suffered hurricane damage this time around were able to have their repairs covered in full, net of the Windstorm deductible. This means that insuring your property for the full rebuilding or replacement cost saves you real money when you have a claim as your insurer does not need to deduct a percentage from your claim for underinsurance. Please ensure that your home or business building and contents are correctly insured as it is one of the most important aspects of your coverage.

We did come across some issues that are worth highlighting as there are a small number of claims that are yet to be finalised for various reasons. The most common reason revolves around obtaining estimates for repairs. Some of our clients are still awaiting initial estimates which can be attributed to the fact that some contractors have become overwhelmed and have found it somewhat challenging to get to all of their clients. Other clients have received their estimates, however they include work that is not hurricane related or they include repairs which are maintenance related which are not covered under the policy. This leads to the estimates having to be split out into hurricane and non-hurricane damage which takes up more time. You can assist your insurer by having your contractor produce an estimate for your hurricane related damage only which will speed up the claims process.

Some claims are still open due to the contractors finding more damage once the works have begun which is a common issue whenever you are dealing with construction. Many times you will find more damage that could not have been detected during the initial inspections of the property. As long as the damage was indeed caused by the hurricane, it will be covered, but will usually require an additional written estimate from your contractor. In these cases we are awaiting the final bills from the contractors.

Some motor claims are still outstanding mainly due to the influx of claims which has resulted in some of the garages becoming overwhelmed which has created scheduling issues. The availability of parts for vehicles has caused a delay for some claims as some parts are on order and have not yet arrived on Island. This is mainly because of the sheer volume of claims and the garages just cannot stock all of the required parts.

Lastly, remember that most insurers will settle a claim based on estimates produced by loss adjusters if you wish to go this route and that way you can have the funds once your contractor is available.

Most importantly, use your renewal date to review your coverage with your Insurance Representative to ensure that you have the correct coverage for your home or business. Ask questions, ask the “what ifs” that you have always wanted to know. Please find out about your insurance before an incident happens, whether that is a hurricane or a fire so that you can sleep easy at night knowing that you are protected.

Jennifer Murdoch is general manager and Juanita Coley is claims supervisor at Colonial Insurance Company Ltd.