When natural disasters strike, the results are often devastating for both lives and property. Earthquakes, tornadoes, hurricanes and wildfires can leave residents and businesses alike reeling. Anyone who owns real estate should be aware of the potential for these events and take steps to protect their interests.
Emergency preparedness measures like gathering medical supplies and creating evacuation plans are vital parts of readying yourself for catastrophic events. However, it’s also wise to consider the financial losses you could face as a result of property damage or liability claims. With the right real estate insurance coverage in place, you have reliable protection even in a disaster.
Why you need to prepare for natural disasters
“Many rental properties and businesses are prone to natural disasters.”
In heavily populated areas across the U.S., homes, rental properties and businesses are prone to natural disasters. In fact, the real estate research firm RealtyTrac found in a 2015 report that 43 percent of American homes were located in counties with high or very high risks for these hazards. In many cases, the risks don’t seem to damage property values, since residents are often willing to pay premium prices to live in the natural beauty of areas that may be threatened by floods and earthquakes.
Communities take a wide variety of advanced measures to stave off the worst in these situations, like building heavily reinforced structures and dams. Nonetheless, sometimes those precautions are not enough, and when they are overwhelmed, the people of the area and their real estate investments may be confronted by even more problems down the line. In the aftermath of a storm or other major weather event, there are severe long-term consequences for the housing market, and those who cannot afford to rebuild may soon find themselves bought out at a disappointingly low price.
Everyone hopes for the best when they are purchasing a home or establishing a business. Still, it’s crucial for any responsible property owner to have a realistic understanding of what natural disasters could hit and the potential outcomes if they do. Setting up emergency plans well ahead of time will keep you, your family and tenants or employees all safer.
In an emergency situation, you want to be sure your financial interests are secure.How insurance can protect you
One of the most important ways to get ready for danger is by obtaining real estate insurance that covers a broad range of losses that can result from a disaster. The disruption to business caused by an earthquake or tornado is difficult enough to bounce back from without the costs that may pile on if you don’t have sufficient financial protection. Holes in coverage leave a real estate owner vulnerable to greater expenses during rebuilding and liability if someone is injured on your property, so be sure you are fully aware of what’s included in your policy.
McGowan Program Administrators offer real estate package insurance that’s designed to fit the specific needs of property owners, whether they are dealing with a flood, earthquake or other causes of serious damage. Policies are available for office buildings, shopping centers, apartments, and commercial or mixed-use buildings. Real estate owners are able to obtain streamlined and improved insurance by enrolling in a package policy designed to include multiple locations and featuring blanket limits of up to $90MM and $2MM annual aggregate limits for general liability.
In addition to natural disaster coverage, the Power of the Pen allows McGowan to offer a wide range of special features in case of ordinance violations, equipment breakdown or medical payments. Catastrophe can strike on any day, but with insurance customized to the risks of your properties, you can rest assured that your interests are protected.
