Pandemic-Affected Home and Business Owners are now facing the Brunt of Wildfires and Extreme Weather

The Year of Turmoil

The year 2020 has already brought some of the most demanding challenges in history.

When the world is already grappling with the onslaught of the COVID-19 pandemic, events of extreme weather, such as a series of tornadoes, devastating wildfires, and an unprecedented 500-year flood have hit the United States.

Over the decades, the state of California has recorded some of the worst disasters in the country's history, and 2020 is no exception.

The ongoing wildfires have burned more than 23,000 acres areas in California. On August 18 and 19, the state authorities issued a mandatory evacuation order to residents in several parts of the state, where lightning strikes fueled more fires.

On top of it, California also had the hottest ever temperature recorded on the planet on August 16 at Death Valley in the Mojave Desert. There the mercury soared to 130 Fahrenheit (54.4 Celsius)!

The list for disasters does not end here. California is also struggling with persistent blackouts because of the worst heatwave in 70 years, which has left millions of people in the dark.

The Necessity of Homeowners and Commercial Property Insurance

In addition to public health fallout due to COVID-19, the recent wave of extreme weather conditions and other disasters have made the matter worse for the people in the US.

As of now in this year, there have been more than 36,000 wildfires in the US, and California finds itself in the middle of this mayhem.

The sudden climate change, along with severe weather, has put home and business owners in California at risk for substantial financial losses if their properties do not have adequate coverage.

Considering the history of California witnessing events such as floods, earthquakes, and wildfires, insurance companies offer relevant coverage through homeowners' insurance, flood/earthquake insurance, commercial property insurance, and other policies.

As a homeowner, you need to make sure that you have the right insurance coverage and proper limits. It would be a nightmare to find out later that you have an unfunded insurance loss, or you have to shell out money from your pocket.

Homeowners Need to Review their Coverage Every Year to Mitigate Risk

When natural disasters struck, they may cause thousands of dollars in losses, and many homeowners often feel unsure whether their properties are insured or underinsured.

Homeowners need to make sure they are buying the right insurance policy to get appropriate coverage for these situations. If unsure, they should right away talk to a leading insurance broker to understand the type of policy they require.

Besides, homeowners need to sit with their broker for an annual review to be sure that their policies provide adequate coverage of their assets.

Currently, most homeowners/dwelling insurance policies do not cover flood damage, and homeowners have to invest in a flood insurance policy separately to cover the costs related to flood events.

In recent times, many terms of homeowners and dwelling insurance policies have changed. Some of these changes include roof settlement provisions and percentage-based wind/hail deductibles. Despite the spiking rates and deductibles, people still have choices when it comes to homeowners insurance.

Read Also: Updates on Unemployment Benefits in California during the COVID-19

Business Interruption Policy Coverage Can Minimize Your Financial Risks

The combined effects of ongoing COVID-19 pandemic and natural disasters have interrupted business operations like never before. Due to these reasons, commercial property owners have to rethink about insurance policies to protect their assets from financial losses.

Commercial property insurance can provide you coverage from property damages related to severe weather conditions. Besides, the policy may also cover the potential loss of business income due to weather events through business interruption coverage.

Make sure to review your commercial property and contents limits, along with your potential loss of business income and additional expense coverage with the help of an insurance broker.

If you are a business owner, you need to think about not just price but also the coverage you are getting. This is where a reputable and reliable broker or agent can guide you to identify the most appropriate policy options.