Questions and Answers Regarding Commercial Insurance
Earthquakes have the potential to do significant damage, despite the fact that they are relatively uncommon in many parts of the nation. Some types of natural disasters, such as damage caused by wind, are covered by commercial property insurance; but, if you want protection against earthquakes, you will need to acquire additional coverage. This question and answer will assist you in evaluating the dangers you face and determining whether or not you need the coverage is discussed. In addition, consult an expert in the insurance industry to determine whether or not your company should think about purchasing earthquake insurance.
Questions that often arise in relation to earthquake insurance
Do I really need to get earthquake insurance for my home?
A. The United States Geological Survey estimates that our country experiences around 20,000 earthquakes each year, the most of which are rather minor. Having said that, there have been earthquakes in 39 states since the year 1900, and all 50 states have been affected by the destruction. If your company is situated in close proximity to geological fault lines or if it operates in a state that is prone to earthquake damage, like California, you should give serious consideration to purchasing earthquake insurance.
What kinds of things are covered by commercial earthquake insurance?
A. Your commercial earthquake insurance coverage will, in most cases, pay for repairs to your facility and any business property that was damaged, such as your inventory. It’s possible that an earthquake’s effect on your business’s bottom line will be compensated for if you have the right coverage. The deductible is the amount that you are responsible for paying out of pocket before your insurance kicks in. Coverage does not begin until the damage has surpassed this amount. Policy deductibles for earthquake insurance are often rather expensive, ranging from 2 percent to as high as 20 percent of the value of your structure depending on its location, age, and condition.
To be eligible for earthquake insurance, do applicants need to meet any specific requirements?
A. Before you are eligible for earthquake insurance, your commercial property may need to be inspected and upgraded first. It’s possible, for instance, that you’ll need to have the structure of your building welded to its base before you can get earthquake insurance for it. It’s possible that you’ll also be asked to reinforce the walls and chimneys, in addition to making other upgrades.