Barbados Home Affairs Minister Urges Homeowners to Consider Home Insurance Amid Hurricane Season Predictions

Home Affairs Minister Wilfred Abrahams has urged Barbadians who can afford home insurance to secure them against damage, especially in light of predictions of an overly active hurricane season – but firmly ruled out mandatory property insurance.

“The government would be wasting time to mandate private insurance,” he declared to journalists at a Department of Emergency Management news conference in Queen’s Park to provide an update on plans for the hurricane season. “There are some persons in Barbados who just cannot afford it. After Hurricane Elsa, we had to repair many uninsured homes. If we mandated private insurance, the same people would be in the exact same position.”

The minister emphasised the potential consequences of such a mandate: “We’d be criminalising people for things outside their control. Even with incentivised subsidies, there will always be a segment of the population unable to insure their properties. That’s the stark reality.”

He stressed the need for the government to explore ways to support these individuals in recovery efforts.

Reflecting on the aftermath of Hurricane Elsa, Abrahams warned it would be difficult for the government to undertake repairs on that scale again. “There will always be those below a certain income level who can’t do better, and we will have to cover them. But for those who can afford to insure their house and choose not to, they cannot expect the same level of government intervention,” he said.

“We are not in a crisis situation at the moment, but the government is not financially in a position to undertake what was done after Elsa again. That was one of the largest social investment exercises by any government of Barbados.”

An official of a leading insurer told reporters that home insurance levels were inadequate and suggested policyholders update their policies and premiums.

Donelle Belgrave-Young, assistant manager of insurance operations at Sagicor, urged insured homeowners to make the necessary adjustments to have their properties insured or brought up to satisfactory coverage.

“I don’t have direct numbers, but they’re not enough,” she said, noting that the damage from Hurricane Elsa highlighted the issue. “Many people did not review or adjust their insurance sums. Only about one to two per cent of our portfolio has seen increases in sums insured, despite our efforts to encourage risk assessments and valuations . . . . It is alarming that people are not heeding the message to increase their sums insured. The thought of having to tell someone they are not fully covered is what scares me the most.”

Addressing what she described as a common misconception about underinsurance, Belgrave-Young said: “If you insure your property for $100 000 but it’s worth $200 000, and you sustain $50 000 in damage, you won’t get the full amount. We prorate the figure, meaning you might only receive about $20 000. To get a full settlement for $50 000 in damage, your property needs to be insured at its full value.”

Meanwhile, Minister Abrahams joined Deputy Director of the Barbados Meteorological Services (BMS), Brian Murray in calling for heightened vigilance and preparedness this hurricane season, which is predicted to be highly active, with 17 to 25 named storms, up to 13 hurricanes, and as many as seven major hurricanes.

Sharing insights from a recent test of the early warning system, the minister said it was discovered that even after two hours of issuing a disaster warning, less than half the population had been informed. “Compare this to how quickly a scandal spreads—within 20 minutes, nearly the whole island knows. We face challenges in getting legitimate, critical messages to citizens promptly,” he said, adding that to address this, the government is employing several strategies, including engaging social media influencers.

“Social media has become a major source of information for many Barbadians. While it is not always used for good, it would be foolish to ignore its potential. We are leveraging influencers who can spread messages quickly, ensuring that critical information reaches the public as fast as possible,” he said.

“I never said traditional messaging isn’t working. If we need to warn you about something three days off, an hour or two delay isn’t critical. But for immediate threats, traditional methods have limitations. We’re realistic and committed to using every available channel to save lives, including social media.”

(RG)