Setting Storm Surge and Precipitation Flood Options

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 during a catastrophe peril analysis.

Precipitation flooding, which is modeled only for Japan, India, Australia, Caribbean, and United States Tropical Cyclone exposures, accounts for flooding that accompanies tropical cyclones. You can include an estimate of the separately modeled precipitation flood losses when calculating losses for tropical cyclone events.

The following two options are available:

• Use the peril code "PSH" to identify and enter coverage for policies that are specifically covered for storm surge or "PPH" for precipitation flood damage. Policies that include the PSH peril (including policies coded for All Perils [PAL]) are covered for 100% of the storm surge value by default. Policies that include the PPH peril (including policies coded for All Perils [PAL]) are covered for 100% of the precipitation flood value by default. You can also include separate policy and reinsurance terms for the PSH or PPH peril if separate terms apply for this peril.

• Include the percent of the storm surge or precipitation flood loss in wind loss estimates. This option applies only for policies not specifically covered for flood, and you can set the percent by line of business.

These are the default percentages for precipitation flood and 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%.

• The precipitation flood default is 100%.