TimeSharing Today | Sep / Oct , 2024
Risk management strategies :
1 . Hail-Resistant Materials : Encourage the use of hail-resistant roofing materials and protective coverings for property exteriors and vehicles .
2 . Insurance Coverage : Ensure adequate insurance coverage for properties to cover potential hail damage . Regularly review and update policies to reflect current risks .
3 . Early Warning Systems : Enhance weather monitoring and early warning systems to provide timely alerts for severe weather conditions .
4 . Tenant and Guest Communicafrom Louisiana to the Northeast , resulting in billions of dollars in insured losses and subsequent premium hikes .
• Severe Weather in the Midwest ( 2022 ): Including tornado outbreaks and derechos , which caused extensive property damage and influenced insurance pricing in the region .
• Hurricane Ian ( 2022 ): Caused catastrophic damage in Florida , leading to significant insured losses and higher premiums for coastal properties .
• California Wildfires ( 2023 ): Continued to challenge the insurance market , with ongoing premium increases and tighter underwriting standards in high-risk areas .
Future implications for property insurance pricing
The continued impact of severe weather and climate events , as highlighted in the 2024 data , suggests several future implications for property insurance pricing :
• Coverage Limitations : Insurers may impose stricter coverage limitations , including higher deductibles and exclusions for certain types of damage ( e . g ., flood or wildfire ).
• Increased Demand for Specialized Coverage : There will be a growing need for specialized insurance products , such as flood insurance and earthquake insurance , tailored to specific regional risks .
• Greater Emphasis on Risk Mitigation : Insurers will increasingly look at the risk mitigation strategies employed by property owners , offering premium discounts or incentives for properties that implement robust risk management practices .
As property management companies , resorts , timeshares , board members , and onsite teams across the United States face an array of weather and climate risks , it is crucial to understand the specific challenges each region encounters and adopt tailored risk management strategies . From the severe winter storms in the Northwest to the destructive hailstorms in Texas , each area demands a unique approach to mitigate the impacts of natural disasters .
The following sections provide detailed examples from 2024 , illustrating the effects of these events and offering practical risk management strategies to enhance resilience and preparedness .
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Northwest : Winter storms and cold waves
Example from 2024 :
• Northwest Winter Storm ( January 12-14 ): This significant winter storm brought heavy snowfall and freezing temperatures , causing hazardous travel conditions , power outages , and significant economic impacts .
Risk management strategies :
1 . Infrastructure Resilience : Upgrad and maintain property infrastructure to withstand heavy snow and ice loads . This includes reinforcing roofs , heating systems , and power lines .
2 . Emergency Preparedness : Develop and regularly update emergency response plans for winter storms , ensuring timely communication and coordination with board members , staff , and guests .
3 . Snow Removal Equipment : Invest in adequate snow removal equipment and ensure timely deployment during storms to maintain safe access to properties .
4 . Community Education : Educate staff and guests on winter storm preparedness , including the importance of having emergency kits and safe heating practices .
Southwest and Rockies : Hail and severe weather
Example from 2024 :
• Colorado Hail Storms and Southern Severe Weather ( May 31 - June 1 ): These storms resulted in property damage and agricultural losses . Hail the size of golf balls pummeled communities , damaging roofs , vehicles , and crops .
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tion : Establish protocols for communicating with tenants and guests before , during , and after severe weather events to ensure their safety and preparedness .
Midwest : Tornadoes and severe weather
Examples from 2024 :
• Central and Southern Tornado Outbreak ( April 26-28 ): This outbreak caused extensive damage , obliterating homes , businesses , and infrastructure .
• Central Tornado Outbreak ( May 25-26 ): Another severe tornado event that brought significant destruction .
Risk management strategies :
1 . Storm Shelters : Promote the construction of storm shelters and safe rooms in properties to ensure tenant and guest safety during tornadoes .
2 . Building Codes : Implement and enforce strict building codes designed to withstand tornado-force winds . Retrofit existing buildings where necessary .
3 . Early Warning Systems : Invest in advanced radar and early warning systems to provide timely tornado alerts .
4 . Staff and Guest Drills : Conduct regular tornado drills and education programs for staff and guests to ensure preparedness and effective response .
South : Hurricanes , tornadoes , and severe storms
Examples from 2024 :
• Southern Derecho ( May 16-17 ): This derecho caused widespread damage , knocking down trees and power lines .
• Southern Tornado Outbreak and East Coast Storm ( January 8-10 ): A severe event that included tornadoes and powerful storms .
Risk management strategies :
1 . Hurricane-Proof Construction : Build and retrofit structures to meet hurricane-resistant standards , including reinforced roofs and windows .
2 . Flood Defenses : Enhance flood defenses such as levees , floodwalls , and drainage systems to mitigate flooding from hurricanes and severe storms .
3 . Evacuation Plans : Develop and regularly update evacuation plans , ensur-