NATURAL DISASTERS & INSURANCE

There is no place on Earth that's entirely immune from the threat of a natural disaster. Every year, people around the world suffer from some kind of significant property damage from earthquakes, hurricanes, tornados, flooding, etc.

Earthquakes: You may have thought that earthquakes only happen in California, but recent events in the Northeast demonstrate the threat that exists in our own community. According to the Insurance Information Institute, earthquakes have occurred in 39 states over the last 100 years and there are approximately 40-50 earthquakes detected annually in the Northeast. Unlike other areas of the country where earthquakes occur along known fault lines, earthquakes in the Northeast do not correlate with the many known faults that exist in the region.

One of the largest earthquakes to hit the continental United States occurred in 1811 along the New Madrid Fault in the Midwest. Earthquakes in Central and Eastern United States affect much larger areas than earthquakes of similar magnitude in the West. For example, the New Madrid earthquake of 1812 was felt 1,000 miles away from the epicenter, ringing church bells in Boston whereas the San Francisco earthquake of 1906 was felt 350 miles away.

Many older structures in the Northeast, such as schools, hospitals, and fire stations are built of un-reinforced masonry (red brick) and are particularly vulnerable to damage or collapse in the event of an earthquake. Most states in the Northeast have adopted some seismic provisions into their state building codes for new construction. However, the coverage, scope and enforcement of these codes vary by state and community.

With the potential for an earthquake to occur in the Northeast again, it is important to plan ahead to ensure you will be prepared if disaster strikes. Earthquakes are not covered under a standard homeowners or business insurance policy but coverage can be added to your current policy by an endorsement.

Wind Damage: Recently the Northeast has also encountered the devastation of Hurricane Irene. Hurricanes are strong storms that cause threatening hazards such as flooding, storm surges, high winds and tornadoes. We are currently in the middle of the Atlantic Hurricane Season which runs from June 1st through November 30th. The National Hurricane Center estimates that every year eleven tropical storms occur and out of those eleven, six convert into hurricanes.

The most important precaution you can take to reduce the damage to your home and property in the event of a hurricane or tornado is to protect the areas where wind can enter. It is critical to strengthen the exterior of your home so wind, water, and debris cannot enter. Damage caused by a hurricane or even a tornado, like the one we had in Western Massachusetts in June, would be covered under a standard homeowners policy, subject to your deductible.

Flooding: Floods can happen anytime, anywhere. In fact, everyone lives in a flood zone; one does not have to live in a coastal area to be impacted by flood damage. Flooding is America's most common natural disasters and between 20 and 25 percent of all flood insurance claims come from low-risk areas. Conditions that cause floods include heavy or steady rain for several hours or days that saturate the ground. Flash floods occur suddenly due to rapidly rising water along a stream or low-lying area.Don't wait until it is too late! A policy will usually take 30 days from application to effective date of coverage, so plan ahead so you are not caught without insurance coverage when a flood threatens your home or business.

It is important to prepare for possible disasters and other emergencies. As we have seen recently in the Northeast, natural disasters can strike suddenly and with or without warning. There are three actions everyone can take that can help make a difference in the event of a natural disaster:

1. Stay informed: Know what emergencies or disasters are most likely to occur in your community.
2. Make an emergency kit: Keep supplies in an easy to carry container that you can use at home or take with you in case of evacuation.
3. Make a family disaster plan: Discuss how to prepare and respond to emergencies that are likely to occur near where you live, learn or work. Plan what to do in case you are separated during an emergency and/ or what to do if you have to evacuate. For more information about preparing for a natural disaster go to: http://www.redcross.org/.

As always, we are here to make sure you have the best coverage for your individual needs. Contact us if you have any questions or concerns regarding your insurance coverage.