The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

An insurance executive yesterday urged Bahamians to factor debris clean-up/removal into their annual coverage after Dorian revealed this could equal ten to 15 percent of their property’s value.

Tim Ingraham, Summit Insurance Company’s president, speaking at a Chamber of Commerce-organised webinar, said businesses and homeowners also have the option of incurring higher deductibles - the amount paid for reconstruction before insurance coverage kicks-in - if they wish to reduce their annual premiums.

Encouraging Bahamians not to gamble with their major investments, especially in Hurricane Dorian’s aftermath, Mr Ingraham said: “Studies have shown that many businesses do not survive catastrophes - whether it’s a fire or hurricane - and they fail at a fairly high rate. Those without insurance, however, fail at an even higher rate than the ones who do have insurance.

“So if you look at the businesses in Abaco, and if you’re in Abaco and you had insurance, it’s much easier for you to get back on your feet than if you now have to go out and raise the money to get started all over again.”

Noting that debris clean-up may now comprise a significant portion of hurricane rebuilding costs, Mr Ingraham said: “What we found in Abaco, which hadn’t really been a major problem before, was with debris removal. When you insure your home you usually will take the rebuilding cost of it, based on square footage, you add a little bit extra for inflation over time, and that’s usually good enough.

“But what happened in Abaco, when buildings got totally demolished they then incurred another cost to just remove that debris. So you could incur up to ten percent to 15 percent of the cost of the building just to have debris carted away if your home is totally destroyed. If you have a significant building, and you think there’s a chance it can be totally knocked down by an event, then debris removal is a critical thing to add to that.

“Location, construction and type of business will make a difference,” said Mr Ingraham when it came to property and casualty insurance premium costs. “If you have a wooden house on the beach, you’re going to pay a lot more than the fellow with a country house on a hill.

“If you have a gas station or a business selling wood, you’re going to pay a lot more than the fellow in the bank down the street. So the type of business, the location, the construction will all factor into it. You can save some money on your insurance if you decide to take larger deductibles in Abaco.”

Ken Hutton, the Abaco Chamber of Commerce’s president, said Dorian represented the third time in history that Marsh Harbour and central Abaco have been inundated by flooding. As a result, he said it was time to consider moving the district to higher ground.

Mr Hutton said: “I think it was the third time, the central business district of Abaco in Marsh Harbour, has been inundated with water from a storm. So we need to look at relocating things like the business district, housing districts and where people live to higher ground away from the main shoreline.”