In California, Earthquake Insurance would seem to be a given, though many businesses may not know where to buy it or whether they can afford it. Earthquakes can happen at any time, and coverage is not typically included under a Businessowners or Commercial Property Policy. The best way to protect your investment is by purchasing Earthquake Insurance.
Earthquake Insurance May Be Mandatory
Banks and other lenders are getting smarter and beginning to require this coverage in order to be compliant with loan requirements. Check your loan documents to see whether Earthquake Insurance is required. If you don’t have your own coverage, it may be force placed through the bank at a much higher rate. Doing your homework could save you money.
Investors are also beginning to require this coverage. Skyrocketing real estate prices have investors eager to protect their investments.
There Are Earthquake Carriers Available
Businesses have many different options to choose from when it comes to this coverage. Lloyds of London is one of many carriers offering Earthquake Insurance, and there are options when it comes to coverage and deductibles.
While homeowners do have the option of the California Earthquake Authority, this entity no longer has a lock on the marketplace. Strong, financially stable insurers like Lloyds of London have entered the marketplace to provide coverage for homeowners.
Not All Coverage Is Created Equal
Businessowners Packages and Commercial Property policies exclude earth movement, earthquake and subsidence. These are all coverages that can be included in an Earthquake Insurance policy for your business.
Earthquake Policies can have deductibles of up to 30% of the insured value which may be daunting. Fortunately, deductible buyback policies are available to reduce the deductible to manageable levels.
If you are looking for more than just earthquake coverage, a Difference In Conditions (DIC) policy may be right for your business. DIC policies are available in certain areas and may include flood insurance if required or requested.
Contact your Hayes Broker for more information about these valuable policies.