4 Reality Checks from Japan’s Earthquake Disaster
Posted on Fri, Apr 15, 2011
1. Mother Nature can be a witch!
Natural disasters like Japan’s devastating earthquake and tsunami reminds us of Mother Nature’s force and how fragile we are under her powers.
2. Canada’s frigid winter isn’t so bad!?
While we’re in the midst of saying goodbye to winter, Japan’s disaster is a stark reality check about weather conditions here in Canada. Although there is some risk of earthquake exposure in
Canada, much of our country, although blistering cold through most of the winter, escapes exposure to many natural disasters faced by other countries. As much as we complain about the cold here in Canada, perhaps it’s not so bad after all.
3. Insurance can be your friend.
As the president of an insurance brokerage, the Japan earthquake was a reality check for me as to just how important insurance is. We see client frustrations with insurance mostly around unhappy factors on their premiums. I read today that reinsurer, Swiss Re, estimates their total loss at 1.2 billion for the Japanese disaster. In Canada today, we have the insurance infrastructure to insure almost any type of loss exposure; this will enable you to protect your assets in the event of a disaster.
4. Insurance always has limits and exclusions.
So, do you have Earthquake coverage? To find this out, you have to review your individual policy coverages; however, most business property insurance products and packages include coverage for earthquakes. Within the coverage, business owners will usually find:
- a deductible, which is usually a minimum percentage (3-5%) of your total insured value.
- a defined period of time (for instance 72 to 168 hours) in which the earthquake loss is considered a single claim. This would allow for more than one earthquake within that timeframe.
- an exclusion for nuclear incident or nuclear explosion or contamination by radioactive material (except for ensuing damage, which results directly from fire and some other exceptions).
Check out your wordings!
For more information on Earthquake and other insurance property protection options you can contact Gougeon Insurance Brokers at 1-800-461-1106.