Beyond the Forecast

Picture this: It's a typical Tuesday afternoon at a senior living facility. The administrator is in their office, reviewing resident satisfaction surveys, feeling good about the facility's progress. Suddenly, the sky darkens. Within minutes, golf ball-sized hail is pummeling the roof, shattering windows, and damaging vehicles in the parking lot. The power flickers, then goes out completely.

Welcome to the new normal of severe convective storms.

As an insurance agent specializing in the senior living industry, I've seen firsthand how these events can devastate facilities. Senior living operators are no strangers to challenges, but there's a growing threat that's been flying under the radar, and it's time we had a frank conversation about it.

Severe convective storms - those sudden, violent outbursts of nature that bring hail, tornadoes, and damaging winds - are no longer just a "secondary peril" in the insurance world. They've become a major player, and they're hitting the senior living industry hard.

Let's break it down.

In 2024, natural catastrophes caused a staggering $60 billion in insured losses globally. But here's the kicker: $42 billion of that came from severe thunderstorms, mostly right here in the U.S. We're talking about 12 storms that each caused over $1 billion in damages.

Now, I know what you're thinking. "Great, another thing to worry about. As if staffing shortages, regulatory compliance, and maintaining quality care weren't enough."

I get it. In my years of working with senior living facilities, I've seen the challenges you face daily. But this new threat is something that demands immediate attention.

So, why are these storms becoming such a big deal?

First off, urbanization. More people are moving into cities and suburbs, which means more buildings in harm's way. The UN predicts that by 2050, 68% of the global population will live in urban areas. That's a lot of potential targets for Mother Nature's fury.

Then there's climate change. Warmer temperatures and increased moisture in the atmosphere are creating perfect conditions for these storms to form. Areas that never used to see severe weather are now getting hit regularly.

But here's the real kicker: the insurance industry is struggling to keep up.

Many senior living operators are finding themselves underinsured or facing sky-high deductibles when it comes to convective storm damage.

The property insurance market has been on a rollercoaster ride. Commercial property rate increases averaged 11% by the end of 2023, marking 24 consecutive quarters of year-over-year increases. And for those with significant exposures and sustained losses? They're looking at rate hikes of 50% to 100%.

Insurance companies are scrambling to adjust. They're raising rates, increasing deductibles, and in some cases, pulling out of high-risk areas altogether. The reinsurance market (that's insurance for insurance companies) saw pricing increase up to 50% in 2023 - the largest jump in a single year since Hurricane Katrina in 2005.

But it's not all doom and gloom. There are solutions out there. You just need to know where to look.

That's where Echo Assurance comes in.

We're not your typical insurance broker. We specialize in senior living and long-term care facilities. We understand the unique challenges you face, and we're here to help you navigate this new landscape.

Here's what sets us apart:

1. Tailored Coverage: We don't believe in one-size-fits-all policies. We analyze your specific risks and create a custom insurance package that covers all your bases.

2. Risk Management Expertise: We don't just sell you a policy and disappear. Our team of experts works with you to identify potential vulnerabilities and implement strategies to mitigate them.

3. Cutting-Edge Solutions: We're always on the lookout for innovative insurance products. For example, have you heard of parametric insurance? It's a game-changer for convective storm coverage.

4. Relationship-Focused Approach: We believe in building lasting partnerships with our clients. When disaster strikes, you won't be talking to a faceless call center. You'll have a dedicated team who knows your facility inside and out.

Let me tell you about Sarah, a senior living operator in Oklahoma.

Sarah came to us after a particularly nasty hailstorm caused $500,000 in damages to her facility. Her previous insurance only covered a fraction of the costs. She was facing the possibility of having to shut down.

We sat down with Sarah, analyzed her risks, and created a comprehensive insurance package that included both traditional and parametric coverage. We also helped her implement a robust risk management plan.

Six months later, another severe storm hit. But this time, Sarah was prepared. The damage was minimal, and what damage did occur was fully covered. Her facility stayed open, her residents were safe, and she didn't lose a single night's sleep.

That's the power of having the right insurance partner.

Now, I know what some of you might be thinking. "This all sounds great, but I bet it's expensive."

Here's the thing: can you afford not to be properly covered?

Think about the potential costs of a major storm event:

- Property damage

- Business interruption

- Resident relocation

- Potential lawsuits

- Damage to your reputation

And that's not even considering the emotional toll on you, your staff, and your residents.

The right insurance coverage isn't an expense. It's an investment in your facility's future. It's peace of mind knowing that no matter what Mother Nature throws your way, you're protected.

But here's something crucial you need to know: an estimated 87% of buildings are undervalued for insurance purposes. Even more alarming, 68% are underinsured by 25% or more, and 19% are underinsured by a whopping 100%.

This underinsurance crisis is a ticking time bomb. When a major event hits, many facility owners find out too late that their coverage falls far short of what they need to rebuild and recover.

At Echo Assurance, we're not just here to sell you a policy. We're here to be your partner in protecting what matters most: the safety and well-being of your residents, and the future of your business.

So, what can you do to protect your facility in this new normal? Here are some key steps:

1. Get a comprehensive risk assessment: Understand your vulnerabilities, especially to secondary perils like convective storms.

2. Update your property values: Make sure your insurance coverage reflects the true cost of rebuilding in today's market.

3. Consider alternative risk transfer options: Look into captives, parametric insurance, or shared and layered programs.

4. Invest in risk mitigation: Install hail-resistant roofing, upgrade your drainage systems, and implement robust emergency response plans.

5. Partner with a specialist: Choose an insurance broker who understands the unique challenges of the senior living industry.

Remember, in the world of senior living, you're not just protecting a building. You're protecting homes. You're protecting lives. You're protecting peace of mind - for your residents, their families, and yourself.

As insurance professionals, we've dedicated our careers to helping you protect what matters most. Now, let us help you navigate this new era of climate uncertainty.

Don't wait for the next big storm to hit before you act. Reach out to Echo Assurance today. Let's work together to ensure your facility is ready for whatever the future holds.

Because when it comes to protecting your facility and your residents, you should never settle for less.

P.S. Still on the fence? Consider this: the next major storm could be just around the corner. Can you afford to wait? Schedule your discovery call now and take the first step towards true peace of mind in this new era of climate uncertainty.