SilverLink - Fall 2008 - (Page 25)

PRIVATE CLIENT SERVICES Personal Insurance Shaking Things Up Earthquakes & Floods & Wind, Oh My! by Pam McCawley Severe weather events in the U.S. have increased marginally over the last year, but middle America seems to have seen more than its fair share of catastrophes already this year. When Mother Nature sends ﬂoods, earthquakes, hurricanes, wind or hail, it’s important to know exactly what type of coverage your home or business insurance policy will provide in the event of loss. You may also ﬁnd a handful of private companies who are willing to write ﬂood policies by special arrangement. In ﬂood-prone states, your mortgage lender may require that you purchase ﬂood coverage before your home purchase can be ﬁnalized. • • Insurance for hurricanes and other windstorms varies by state and sometimes by county. Several states, including Alabama, Florida, Louisiana, Mississippi, North Carolina, South Carolina and Texas, offer windstorm coverage pools for people who can’t secure private coverage. Huh? You say it’s not covered? The recent barrage of severe weather events so far this year may have prompted you to review your homeowner’s insurance policy. When you do so, you could ﬁnd a few surprises. For example, earthquakes and ﬂoods aren’t usually covered by standard homeowner policies. Likewise, if you live in an area prone to natural disasters such as hurricanes, tornadoes or hail storms, your homeowner’s insurance may not cover damage for those calamities (or coverage may only be provided on a limited basis). Your agent/broker is an excellent resource and can help alert you to dangerous gaps in coverage, especially if you live in a geographic location that faces special risks. Again, don’t hesitate to ask your agent/broker if specialized coverage is necessary for your speciﬁc locale. An agent’s expertise is invaluable; he or she will know what you need and the carriers available to place appropriate coverage for your exposures. If What You Have Isn’t Enough You can often close hidden gaps by purchasing additional insurance. Whether or not you choose to buy additional coverage, however, depends primarily on two factors—the location of your home and the particular event you wish to insure. Depending upon your need, the following situations may apply: • • In most states, earthquake coverage can be purchased from your homeowner’s insurance company. Flood insurance is typically provided by the National Flood Insurance program operated by the federal government (for information, visit http://www.fema.gov/business/nﬁp/). It’s Your Choice Despite the availability of coverage, some homeowners choose to forego insurance protection. The following are the most common reasons given for not carrying additional coverage: • Cost—Disaster insurance can be expensive. Earthquake coverage ranges from several hundred to thousands of dollars per year, with deductibles from 10 – 15 percent. This means that before your coverage activates, you could pay the ﬁrst $20,000 – $30,000 of damage on a home insured for $200,000. Other catastrophes may have much lower deductibles, usually 2 percent for windstorm coverage and $500 to $1,000 for federal ﬂood insurance. 25 SILVERLINK — FALL 2008 http://www.fema.gov/business/nfip/

Table of Contents Feed for the Digital Edition of SilverLink - Fall 2008

SilverLink - Fall 2008 Table of Contents Risk Management: Toto A Marriage Made to Last Cashier’s Check Fraud? Selection Validation Digital Tool Box When the Curtain Falls Lightning Strikes Increased Fuel Economy Employee Benefits: To Infinity & Beyond Securing Retiree Healthcare Private Client Services: Batter Up! Shaking Things Up STOLI Under Attack Client Spotlight: Bellevue University Internal Happenings: SilverStone Group Wellness Activities Group

SilverLink - Fall 2008

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