With the recent Ridgecrest 7.1 magnitude earthquake behind us, earthquake preparedness may be on your mind. According to the California Earthquake Institute; surprisingly in California, only 10% of property owners elect to purchase coverage for this destructive peril.
Typically, the main reasons for not purchasing coverage are;
High deductible (usually 15-25% of TIV) does not justify the premium.
It’s improbable we would suffer a TOTAL LOSS, we’ll take our chances
Before sharing a recent success cost remedy, first, let’s address the
3 critical reasons you cannot afford not to have quake insurance:
Earthquake Sprinkler Leakage (EQSL) Coverage: EQSL endorsements on standard Property policies provide coverage for your building and/or contents inside the building should the sprinkler system leak due to an earthquake. It also provides limits for repairing damaged sprinklers.
Concurrent Causation (Fire): Most Property policies cover fires caused by an earthquake. However, if walls or other portions of your structure have collapsed
prior to the fire as a result of an earthquake, causation can come into question, affecting the limits available to rebuild as well as your business income and extra expense limits. Having an Earthquake policy in place can fill help fill this coverage gap.
Business Interruption and Extra Expense Coverage
: Even with only partial damage, your business may be subject to an interruption during the period of reconstruction. This means a shortfall of revenue exists to pay your mortgage and other fixed costs, such as salaries of key employees and utilities.
Ordinance or Law Coverage: Building codes change frequently, and some building departments require the total demolition of a property that sustains 50% or more damage.
** SUCCESS **
Amidst the recent Ridgecrest quakes, while many insurance carriers had moratoriums in place, we successfully placed Earthquake coverage for a 60-room hotel. $3.9 Million (TIV) for premium of $3,900 (or $2,500*) per year 4% deductible!
Allow the professionals at Robert E. Harris Insurance Agency to provide you with a complimentary consultation regarding this important topic.