Several weeks after
category 4 storm Charley caused the deaths of 25 people, an estimated $7.4
billion in insured losses and nearly 150,000 people to ask FEMA for assistance,
a community prayer service was held for residents in Port Charlotte. Muslim,
Jewish and Christian religious leaders gave inspirational talks to the 600-plus
residents, and Franklin Graham, evangelist son of Billy Graham, delivered the
keynote message.
My thoughts and prayers are with the victims, volunteers and professionals who are working to make this recovery as efficient and effective as possible.
My best,
Twelve years ago this month, Hurricane Andrew hit Homestead and became the costliest natural disaster in U.S. history. I served as Florida's Insurance Commissioner when Hurricane Andrew made landfall.
Sadly, on this anniversary, thousands of Floridians again are suffering the aftermath of another catastrophic storm.
On August 13, Hurricane Charley mapped a destructive course from Sanibel Island through Fort Myers, Punta Gorda, Arcadia, Lakeland, Orlando and Daytona Beach. The destruction is overwhelming, and so are the emotions and hardships those residents and business owners are facing.
But there is good news. Because of what we learned from Hurricane Andrew, the victims of Hurricane Charley can look forward to rebuilding their lives and their businesses more quickly and with more coordinated assistance than before.
After Hurricane Andrew, it took weeks for relief supplies to be delivered and utilities to be restored. Fraud and price gouging were rampant. And, it was months before any reliable estimates were available on damages, both insured and economic.
This time, truckloads of water, food and other relief items were on the way before Hurricane Charley came ashore. Utility companies were immediately working to restore power, and recovery crews were removing trees and debris within hours of the storm’s landfall. Insurance specialists were dispatched the next day to expedite the filing of insurance claims, and teams of investigators were on-scene, creating a visible force against any would-be scam artists.
Perhaps more importantly, the response and coordination among federal, state and local officials has been tremendous.
Another stark contrast between Hurricane Andrew and Hurricane Charley is that Florida’s insurance industry is better prepared financially.
In the years before Hurricane Andrew, residential and commercial development had popped up along our shorelines and in our cities and towns. Every home and business was in search of property insurance protection and insurance companies were issuing policies hand over fist to keep up with the demand. At the time, Florida’s property insurance market was one of the most active and competitive in the nation.
In Hurricane Andrew’s wake, companies that took in $11 billion in premium the previous 20 years paid out $16 billion in insured losses, leaving over one million homeowners nearly stranded without insurance coverage.
Today, insurance companies are
backed by a $15 billion Florida Hurricane Catastrophe Fund and are reserved to
handle up to a $50-billion storm. An insurer of last resort is also in place.
Citizens Property Insurance Corporation provides insurance to those with nowhere
to turn to for coverage.
Undoubtedly, we will learn new lessons from Hurricane Charley. But because of
what we learned from Hurricane Andrew -- that insurance companies, individual
citizens, and government officials at all levels are responsible for preparing
for the immense costs of a major natural disaster -- we can all look forward to
a faster recovery from Hurricane Charley.
Pensacola from the bay is our skyline for August.
