Response to the following

One of the recent topics we studied was the 4Ts. We are just beginning to get into hurricane season in the US and the business associated with damage protection/mitigation, and planning efforts are all too often too little too late to truly recover from the effects of the storms. The T in Transfer has to do with insurance companies that are responsible for paying customers monies needed to being the repairs as they are needed. “For some risks the best response made to be to transfer them. This might be done by conventional insurance, or it might be done by paying a third party to take the risk in another way. This option is particularly good for mitigating financial risk or risks to assets” (Hopkin, 2018).
In some cases, the federal government, through FEMA, will get involved in the assistance process as well as numerous NGOs such as the Red Cross. While Super Storm aka Hurricane Sandy struck the East Coast quite some time ago, measures to rebuild communities following new codes are still taking place. Unfortunately some businesses will never recover from the devastation and there simply is not enough insurance to balance out the damage and replace the business(Cardoso, 2019).
“Homeowners, condo and renter’s insurance cover damage sustained from most perils, including tornado, hurricanes, severe storms, rain, wind and fires. Homeowners insurance will pay to repair the structure of the property up to the insured amount” however “damage from flooding and earth movement – which includes earthquakes, mudslides, landslides and sinkholes– is excluded from homeowners, condo and renter’s insurance” (Herron, 2109). Still, some companies will not pay and the government will not get involved unless the events are declared officially as natural disasters. We see this more recently with efforts to rebuild Puerto Rico, ravaged by Hurricanes Irma and Maria in 2018 (Beltran, 2019).
Tonight some wait for Tropical Storm Barry, projected to become a hurricane and hit the state of Louisiana, ravaged by Hurricane Katrina over a decade ago. Homeowners and businesses are trying to pack up as many valuables as possible and flee the area while first making sure that what is left behind might be salvaged and hoping insurance will cover the losses and damage (Herron, 2019). All major news stations are showing numerous organizations flocking to the area with supplies and manpower needed to open shelters and rescue effected humans and animals as needed. Hopefully the benefits associated with living in coastal communities far outweigh the risks and no one will need to worry about using their insurance for damages. We can only hope.
Danielle 
References:
Beltran, I. (2019). One year later: the critical role of NGOs in Puerto Rico’s recovery. Prevention Web. Retrieved from https://www.preventionweb.net/news/view/60840/
Cardoso, J. (2019). Seven Years After Sandy, Slow Moves Toward Resiliency in High-Risk Nabes. CityLimits.Org. Retrieved from https://citylimits.org/2019/07/01/sandy-resiliency…
Herron, J. (2019). With Tropical Storm Barry brewing, it’s time to know what home insurance covers. USA Today. Retrieved from https://www.usatoday.com/story/money/2019/07/11/tr…
Hopkin, P. (2018). Fundamentals of Risk Management: Understanding, Evaluating and Implementing Effective Risk Management (5th Ed.). London, England: Kogan Page Limited.