Storm Surge Options Dialog Box

 

Storm surge is an abnormal rise in sea level accompanying a hurricane or other storm. You can include an estimate of the separately modeled storm surge losses when calculating losses for tropical cyclone events.

  Storm surge does not apply for workers' compensation policies.

The Storm Surge Options dialog box contains the following fields and buttons that enable you to set the storm surge percentage for each LOB associated with the target for a catastrophe peril analysis:

Field

Description

Total Records

Displays the total number of lines of business associated with the target for this catastrophe peril analysis.

Line of Business

Displays each line of business associated with the target for this catastrophe peril analysis. You can specify a percentage for each LOB in the corresponding % field.

  Click the header of any column to sort the list of LOBs and percentages by that column.

%

Specifies the storm surge percentage for each line of business associated with the target for this catastrophe peril analysis. To set a storm surge percentage, click the % field for the LOB for which you want to set the storm surge percentage. Then, enter the desired storm surge percentage.

OK

Enables you to save your changes and close the Storm Surge Options dialog box.

Cancel

Enables you to close the Storm Surge Options dialog box without saving your changes.

Application of Storm Surge and Precipitation Flood

Touchstone applies storm surge and precipitation flood differently depending on the following two conditions:

       Whether you code your contract and/or location data specifically to include the storm surge peril (PSH or PAL - all licensed perils) or the precipitation flood peril (PPH or PAL - all licensed perils) when you import or add this data for a contract or location

       Whether you enable the Storm Surge or Precipitation Flood check box in the Perils area on the Analysis Settings pane when you configure a Detailed Loss Analysis

The combination of each of the options for these two conditions results in the following four scenarios:

Contract/Location Coded for Storm Surge Peril (PSH or PAL) / Precipitation Flood Peril (PPH or PAL)?

Storm Surge / Precipitation Flood Check Box in Detailed Loss Analysis Configuration Enabled?

Result

Yes

No

Touchstone does not include any storm surge / precipitation flood losses.

Yes

Yes

Touchstone runs the storm surge / precipitation flood model and includes 100% of storm surge / precipitation flood losses in the analysis results.

No

No

Touchstone does not include any storm surge / precipitation flood losses.

No

Yes

Touchstone runs the storm surge / precipitation flood model and adds the percentage of storm surge / precipitation flood losses, as specified in the Storm Surge Options dialog box or Precipitation Flood Options dialog box, to the wind losses in the analysis results.

  If the Storm Surge and Precipitation Flood sub-perils are not explicitly coded in your exposure data, you must select the Wind peril when configuring the loss analysis. You cannot get surge or precipitation flood leakage losses independently of Wind losses.

 

Including a Percentage of Storm Surge or Precipitation Flood by Line of Business

If a contract or location is not specifically covered for storm surge or precipitation flood, you may choose to configure Detailed Loss Analyses to include a percentage of storm surge or precipitation flood losses by line of business for the following reasons:

       You may choose to assume that you will pay some storm surge or precipitation flood losses, even if your policies do not specifically cover this peril. This condition is called "leakage" and typically applies to residential policies.

       You may not have the precise details that specify exactly which perils every policy covers. Therefore, you may want to assume that a certain percentage of your risks have storm surge or precipitation flood coverage. This condition typically applies to commercial policies or aggregate data.

 

Note the following default percentage for storm surge that Touchstone includes in wind loss estimates:

         For all United States and World event sets, the storm surge default is 5%.

         When a world event set is selected, the storm surge default (5%) is applied to all exposures.

         For Japan event sets, the storm surge default is 100%.

         For all other event sets, the storm surge default is 10%.

         You can modify the storm surge value up to 100%.

 

For more information about setting the storm surge options, see Setting Storm Surge and Precipitation Flood Options.

 

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Touchstone V3.0 Updated December 01, 2016