SilverLink - Fall 2008 - (Page 26)

• Coverage Limitations—The most basic earthquake coverage policies generally cover only $5,000 in damage for the entire contents of your home. Swimming pools, landscaping or outbuildings may be excluded, but additional coverage can usually be purchased for a higher premium. It’s Not Mandatory—With the exception of those who live in ﬂood plain areas, coverage for catastrophes is optional and is not required by mortgage lenders. Isn’t That FEMA’s Job?—The Federal Emergency Management Agency (FEMA) is the arm of the U.S. government mandated to help mitigate disasters, respond to unexpected events and help with recovery after natural disasters occur. Before FEMA can step in, however, the President of the United States must ﬁrst declare a major disaster for the involved area. Although you might suffer a personal catastrophic loss, if the overall damage is limited in scope, it’s possible that a disaster will not be declared. Most ﬂoods, for example, are not declared major disasters. FEMA’s assistance is designed to provide help when losses are not covered by personal insurance; it is not intended to restore property to the condition that existed before the disaster. Even when a disaster is declared and FEMA does step in, the assistance available may not be enough to cover all losses, as FEMA grants are limited and cover only basic needs (i.e., the maximum FEMA limit on home repairs is $200,000). It’s also important to note that for many individuals, FEMA assistance is offered only in the form of a loan administered by the Small Business Administration.1 Is additional coverage right for you? Depending upon your individual risk, it may be a good idea to add additional disaster coverage to your insurance portfolio. Is your home in a high-risk location? Most homeowners tend to downplay the risks they face, even if they live directly above an earthquake fault or in a ﬂood plain. Obviously, living in a coastal state puts you at risk for hurricanes, while a home west of the Rocky Mountains or near the New Madrid Fault* poses a threat of earthquakes. And ﬂoods can affect homes all across the U.S. The type of house you live in can also affect insurance coverage and premium. Insurers pay particular attention to the age of the home, type of construction and rooﬁng material used, the number of stories in the dwelling and whether additional safety measures have been put into place. There may be some homeowners for whom additional coverage is not necessary. Those with quick access to large amounts of cash may forego the option of extra insurance. For everyone else, it’s important to remember this: it only takes one natural disaster to ruin your home—and your ﬁnances. Insurance is designed to protect you from ﬁnancial setbacks you couldn’t easily recover from on your own. It may be time to contact your agent or broker to review the speciﬁcs of your standard policy and determine whether you need additional coverage. • • 1 From the FEMA website at http://www.fema.gov/assistance/process/sba_assistance.shtm, accessed June 30, 2008. * The New Madrid Fault system extends 150 miles southward from Cairo, Illinois through New Madrid and Caruthersville, Missouri, through Blytheville, Arkansas to Marked Tree, Arkansas. It dips into Kentucky near Fulton and into Tennessee near Reelfoot Lake and extends southeast to Dyersburg, Tennessee. It crosses ﬁve state lines and crosses the Mississippi River in at least three places (information from the Arkansas Center for Earthquake Education and Technology Transfer, at http://quake.ualr.edu/public/nmfz.htm, accessed June 30, 2008). CONTACT PAM MCCAWLEY AT 402.96 4.5570 OR PMCCAWLEY@ SSGI.COM 26 http://www.fema.gov/assistance/process/sba_assistance.shtm http://quake.ualr.edu/public/nmfz.htm

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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