3 Things You Must Know Before Buying Commercial Earthquake Insurance
Commercial properties need earthquake insurance – you’ll have coverage for structural, inventory & property damage, & even loss of income.
Should you worry about earthquakes? How often do they happen?
The U.S. Geologic Survey (USGS) records over 100 earthquakes per year in the United States alone, most of which have a magnitude of between 5 and 5.9. The National Earthquake Information Center locates about 55 earthquakes per day around the world.
That means earthquakes are more common than most people think, and it’s important to consider getting earthquake insurance for your home and business. However, you want to make an educated decision.
Here are three things you must know before you purchase an earthquake insurance policy.
1. Your Business is Probably Near a Fault Line
Many Americans associate earthquakes with California and assume the rest of the U.S. is safe. That’s far from true.
Since 1900, earthquakes have caused damage in all 50 states. Here are some of the major areas of concern you might not think about:
– The Virginia Seismic Zone affects major cities on the East Coast as far north as New Hampshire.
– The Ramapo Fault Zone, with several fault lines that run through New York City
– The New Madrid Seismic Zone, with faults running through Arkansas, Missouri, Kentucky, and Tennessee
– The Northern Sangre de Cristo Fault in Colorado
– The Cascadia Subduction Zone impacts Portland, Seattle, and Vancouver.
– In 1812, a series of earthquakes in the New Madrid Seismic Zone caused the Mississippi River to run backwards for three days — and if that happened today, the losses would be catastrophic.
Keep in mind that earthquakes cannot be predicted, they can only be recorded. That means you need to take steps to protect your business now, before something serious happens.
2. Commercial Property Insurance Excludes Earthquake Damage
Most business owners assume that if their business property is damaged, their business insurance policy will cover repairs.
However, there are certain types of events that are specifically excluded from regular commercial insurance, including damage caused by earthquakes. Commercial flood insurance also does not cover floods that result from an earthquake.
Why? An earthquake can trigger landslides, flash floods, fires, and more. There is an enormous amount of damage possible, which makes it impossible to include in a traditional commercial property policy.
A specialized commercial earthquake policy will give you the peace of mind that if an earthquake occurs in your area, you’ll have coverage for structural damage, inventory and property damage, and perhaps even loss of income while you rebuild.
3. How to Qualify For Earthquake Insurance
In order to qualify for earthquake insurance, you’ll need to meet certain standards. These may vary depending on how far you are from a fault line, the seismic activity in your area, and more.
For example, many insurance companies require that your building pass an inspection, and you may have to install certain safety upgrades that make your property safer if there is an earthquake.
Once you do, not only will you qualify for coverage, but you’ll also be safer and have less damage if seismic activity occurs.
We Are the Extra Milers to Protect Businesses and Properties
The Rick Callaway Team is known as the Extra Milers in protecting your business, employers, employees, and assets.
We leave no stone unturned to get you the best deal. No under coverage. No overpricing. Fast turnaround. We have board level business acumen for understanding your business operations to customize your coverage.
Please call us for a free consultation: 925-788-5558 or email us at: firstname.lastname@example.org.