With the approach of Hurricane Dorian the timing is certainly appropriate for any property owner to assess their emergency preparedness, specifically as it relates to flooding and heavy winds. The importance of working with your insurance professional and strategic vendors to develop a disaster plan has never been more relevant. Here are a few factors to consider when assessing your risk and financial exposure for loss:
Flood Coverage provided? If so, what are the limits and coverage terms?
Do separate wind or flood deductibles apply? If so, are they a % or a flat dollar deductible (e.g. $2,500 vs. 2% of total insured value)
Mold coverage included for both property damage and bodily injury?
If damages occur from flooding or a Named Wind Storm, will Business Income coverage kick in? If so, for how long?
What preparation has or will be done to prevent damages from occurring or compounding?
These are just a few items to consider when developing the initial stages of your disaster plan. Please keep in mind there are many insurance policies that offer varying degrees of flood and wind coverage. The key to reducing any risk is identifying the problem/issue and implementing a targeted solution that reduces, eliminates or transfers the risk to a third party.
I've included a very interesting article about the importance of preparing and planning for hurricanes and their impact on the Commercial Real Estate industry