Strong winds and heavy rains are likely to create significant damage and leave residents without a stable living situation. These weather events and natural disasters can also bring an overload of claims processing work for insurers. As such, working with a claims vendor organization that provides claims outsourcing services may be a necessity.

Tropical Storm Sandy is one such natural disaster that may destroy houses in its path. Sandy is expected to hit hurricane status in the coming days, according to the Claims Journal. Currently, Jamaica and Haiti are under tropical storm watch.

On Tuesday, Tropical Storm Sandy was located above the Caribbean Sea, 375 miles south of Jamaica. The center of the storm has winds that have reached 70 miles per hour while maximum, sustained winds reached 40 miles per hour.

So far, there have been 18 named storms in the Atlantic Hurricane 2012 season. Forecasts show that Sandy will move over Jamaica on Wednesday, on eastern Cuba Thursday and, on Friday, it will move past the eastern Bahama islands.

More importantly, NBC News reported that the tropical storm is likely to affect the United States. Residents of Florida and the northeast should be prepared for heavy rains next week, with 10 to 12 inches of rainfall.

"These rains may produce life-threatening flash floods and mudslides … especially in areas of mountainous terrain," the hurricane center said in a statement.

The storm was moving 14 miles per hour, as of yesterday. Also, local officials have instituted a tropical storm watch for south Florida. At this point, forecasters expect Sandy to be a weak Category One hurricane with its winds reaching 80 miles per hour at most.

Regardless, even winds with this strength can cause residential damage. In preparation for Sandy's effects, and throughout hurricane season, insurers would be wise to use claims outsourcing provided by a claims vendor organization.