Is your business and home adequately covered for a natural disaster?

4/29/2021 (Permalink)

Utilize your best defense to ensure that you are properly covered for each type of natural disaster that our sunshine state is prone to.

Since 2020 was such a rough year, one takeaway that we have learned is that we can never over-prepare for the unexpected. None of us could have predicted the far-reaching and serious effects of the COVID-19 pandemic. Despite year after year of emergency preparedness reminders, many of us were still caught off guard. Even if our emergency supplies and food held up, we always need to update, restock, and replace expired or used items. In California, we need to think in terms of earthquakes, floods, windstorms, and wildfires.

What about properly preparing for your business? How is your commercial insurance policy written? If improvements have been made at the property, or specialty equipment is purchased… have photographic documentation been provided to your insurance? These important updates are crucial in the event of any sort of disaster from fire, storm, or flooding. Any sort of severe wildfire or storm can be catastrophic to a company if underinsured. Is coverage extended to include your contents? Or is coverage for the structure only? Have you researched separate Earthquake policies and coverage? Now is the time to reach out to your insurance agent, review policy limits, conditions, ensure your coverage is sufficient for your needs, and ask lots of questions. Find out specifics and if different types of disasters affect your deductible. Be smart and careful not to decline an increase in coverage that you may need in the event of a natural disaster.

Underwriting departments have periodic changes made from the Insurance commissioner’s board and regardless of being a long-term policyholder or a new one, changes are made across the board. Will those changes affect you and your livelihood? Many national insurance companies are no longer able to provide coverage for high-risk businesses or those located in fire danger zones or flood-prone areas in California. Finding wildfire coverage in Southern California may be a challenge for some, depending on the circumstances. Do your utmost each year to hope for the best but prepare for the worst.