A few weeks ago, this column referred to disaster insurance by stating:
“A LITTLE INSURANCE CAN GO A LONG WAY. Consider the cost — and then consider the benefits. And make a decision as to whether or not insurance is for you. Do the math. Insurance is another article for another day, but is always worth contemplation.”
Well, this is the day. Time to write another article. Time to contemplate how to mitigate our local hazards.
I was contemplating it two nights ago, as our basement flooded — again.
I contemplated how many Cordovan homes may have flooded this past summer, when the rain kept coming. And coming. And coming. Flooding is a definite Cordova hazard, as are earthquakes.
One of the ways that Cordovans can prepare for emergencies is by being proactive with regards to the potential hazards we face. A great example of this proactive idea, mitigation, is insurance against those potential hazards. Do you have flood insurance or earthquake insurance for your home or property?
All property owners in Cordova can get flood coverage. Yes, everyone can get up to $250,000 of coverage for structures. Home owners can get it. Renters can get it. And business owners can get it. If you currently do not have flood insurance, and you live in an area prone to floods, it may be worth your time to investigate. Call a qualified insurance company or broker or search online at www.floodsmart.gov. Be sure to ask for a “National Flood Insurance Policy”.
The city of Cordova has an ordinance for flood damage prevention, Chapter 19.04. That chapter describes the city’s intent to be proactive with regards to flood hazard areas and may be viewed on the city website www.cityofcordova.net. The areas of special flood hazard identified by the Federal Insurance Administration in a scientific and engineering report entitled “The Flood Insurance Study for the City of Cordova,” dated December 16, 2015 (with accompanying flood insurance maps) is adopted by reference and declared to be a part of the chapter.
The Flood Insurance Study is on file at city hall.
Earthquake insurance is another consideration. It is important to note that standard homeowner insurance does not cover damage and destruction that happens as a result of an earthquake, and many fire insurance policies do not cover the fires resulting from earthquakes. As a point of interest, there was an earthquake in California in 1989 that caused $6 billion in damage, and only 16 percent of that was covered by insurance. It was the Loma Prieta earthquake.
Only one out of three households in Alaska have earthquake insurance. Most of those are added on to the standard insurance as endorsements. Typically, there is a deductible of 10 percent of the value of the home.
So, if your home is currently insured for $100,000, you would have to pay $10,000 in damages before the insurance company would pay anything. Separate deductibles typically apply to home contents and structure, and the base cost of earthquake insurance will depend upon a variety of factors.
If you live in a home built of bricks, the insurance company sees that as a higher risk and thus you pay more. This information on earthquake insurance was found in the outstanding earthquake resource entitled “Are you prepared for the next big Earthquake in Alaska?”
Check it out on the City website by going to Living in Cordova to Cordova Prepared and then click on the link that says Prepare for the “Big One”. And, of course, the very best place to get more information on earthquake insurance is from your insurance agent.
Think about mitigation. Maybe contemplate insurance.
Be prudent. Be ready. Be prepared.
