Exhibitor Spotlight: Recoop
When a natural disaster strikes, there is no shortage of images depicting the array of physical damage. From entire neighborhoods flattened by tornados to homes in ashes from wildfires, we are overwhelmed by visuals of destruction and personal heartbreak. What is harder to picture is the financial toll natural disasters take on individuals and families hours, days, and months later. But when you get down to it, the numbers can be equally as shocking as the pictures. The truth of the matter is that less than half of all losses resulting from extreme weather and natural disasters are covered by insurance. In the U.S. alone, $60 billion in uninsured losses were reported in 2021.
The precarious financial position U.S. families are in after natural disasters really came into focus for Recoop Disaster Insurance founder Darren Wood in 2012 when Hurricane Sandy hit the Atlantic seaboard. With reports of 100-mph winds, 14-foot storm surges and nearly 8 million businesses and households without power, the superstorm dominated the news. As an insurance professional, the aftermath of Hurricane Sandy and its $70 billion in damages that left many individuals and families homeless and ultimately bankrupt, is what struck him the most.
Hearing these devastating personal stories of loss and uncertainty crystalized for Darren the toll natural disasters take on everyday people. And it wasn’t just about hurricanes. What about earthquakes, tornadoes, winter storms and more? According to Environment America, 97% of the U.S. population have been affected by a federally declared disaster since 2010. Add in the fact that the average household savings in the U.S. is just $3,800 and 60% of Americans have no emergency fund, it’s clear that a perfect storm is brewing for stress and financial ruin, making natural disaster coverage more important than ever.
The risk to families is real and living in denial is costly. Recoop’s focus is on offering a first of its kind multi-peril disaster insurance product that pays a lump-sum cash benefit (up to $25,000) after a covered natural disaster. It fills the gaps to pick up where typical homeowners and renters insurance stops. With Recoop, people are able to get recovery cash into their hands within days and without any loopholes or gotchas, helping them bounce back faster after a disaster.
Knowledge is power, so Recoop encourages consumers to dig in and read their current homeowners insurance policy to better understand their coverage as it pertains to natural disasters. Actively looking for terms like “limits of coverage”, “eligibility”, and “exclusions” will help them discover what is and isn’t covered, so they know where to start looking for additional coverage to address their risk and protect their futures. Consumers can start by recognizing these five common gaps in their policies, so they can better protect one of their greatest assets when disaster strikes:
1) Disasters, like earthquakes and storm surge caused by hurricanes, aren’t typically included in standard homeowners or renters’ insurance policies, so without additional single or multi-peril insurance, they could be on the hook for those costly repairs.
2) The value of certain parts of the home, (think the roof or windows) depreciate over time so the cash value the homeowner receives from the insurance company may only be a fraction of the cost of replacement.
3) Deductibles can be very high for disasters, especially for wind-related damages from tornadoes and hurricanes in high-risk areas. These disaster deductibles can cost anywhere between 5 – 30% of a home’s value.
4) Most homes are underinsured by 20% of their value and there are rising costs of materials and increased demand and cost for labor and supplies. This goes for guaranteed replacement policies too, which are often capped based on the home’s insured value.
5)With typical home insurance, customers could be stuck waiting up to 30 days before they get paid after submitting a claim.
To learn more about these gaps and how multi-peril disaster insurance works, visit our site or stop by the Recoop Disaster Insurance booth at the Natural Disaster Expo in Miami on February 7th and 8th, 2022. This event is free to attend and you can register here.