Reed Smith Client Alerts

Hurricane Michael has wrought widespread devastation on the Florida panhandle as a Category Four hurricane with 155 mile per hour winds and storm surges of several feet or more. Now the process of assessing the losses and repairing and replacing damaged property must begin. Total losses for damage to property and interruption of business are likely to be measured in the billions of dollars, and the struggle to repair and rebuild could take months or, in some cases, years.

Authors: Paul R. Walker-Bright

Hurricane Michael has wrought widespread devastation on the Florida panhandle as a Category Four hurricane with 155 mile per hour winds and storm surges of several feet or more. Now the process of assessing the losses and repairing and replacing damaged property must begin. Total losses for damage to property and interruption of business are likely to be measured in the billions of dollars, and the struggle to repair and rebuild could take months or, in some cases, years.

Due to Hurricane Michael’s combination of high winds and floods, many properties will have suffered damage from both wind and water. Many property insurance policies cover losses caused by wind (and wind-driven water), but exclude losses caused by “flood” (now often defined to include “storm surge”). In cases of property damage caused by hurricanes, a common coverage question is whether policies insure property damage concurrently or sequentially caused by a covered event (wind) and an uncovered event (flood).