Learn more about Commercial Earthquake Insurance in California
What is commercial earthquake insurance?
With the amount of seismic activity that California experiences, businesses with property in the state are often well aware of how much risk earthquakes pose. Commercial earthquake insurance may help businesses that own property protect themselves from this type of risk.
Commercial earthquake insurance provides specialized coverage for damage that earthquakes could cause to commercial buildings. Few other insurance policies offer this protection.
What businesses in California should have earthquake insurance?
Most businesses in California should have earthquake insurance for any buildings they own. Earthquakes occur throughout the state, and can strike at almost any time.
Some businesses that have a financed building may find that their lender requires the building to be insured against seismic damages. Coverage is broadly recommended throughout much of the state irrespective of any lender requirement, however.
What coverages are included in commercial building earthquake insurance policies?
While these policies mainly (and often only) protect against earthquake-induced damage, they have several coverages that might apply if there’s an earthquake. Some of the coverages that these policies may offer are:
Structural Repair Coverage: Might cover the costs of repairing the insured property if it’s damaged.
Rebuilding Coverage: Might cover the costs of rebuilding the insured property if it’s a total loss.
Building Code Upgrades Coverage: Might cover additional costs that rebuilding to current codes requires.
Land Restoration Costs Coverage: Might cover the costs of restoring land that’s substantially damaged.
Emergency Repairs Coverage: Might cover the costs of emergency repairs that are needed to prevent further damage.
Commercial Contents Replacement Coverage: Might cover the costs or repairing or replacing items that are damaged.
Does commercial property insurance cover seismic damage?
Commercial property insurance protects against a range of risks, but earthquakes are usually excluded from the risks that these policies cover. Instead, businesses that need coverage for seismic damage usually have to get a separate earthquake policy.
What’s a commercial DIC insurance policy?
A commercial difference in conditions (DIC) policy may cover both earthquakes and floods.
type of policy may be of interest to California businesses that have properties in flood zones, but it’s not necessary to get a DIC to get earthquake insurance. Earthquake and flood insurance can each be purchased separately on their own.
An insurance agent who specializes in commercial earthquake and flood coverages will be familiar with DIC policies. They’ll be able to help businesses find earthquake coverage through whichever type of policy best protects the business’s property.
Can earthquake insurance be purchased for undeveloped land?
While it’s much less commonly purchased, earthquake insurance could be available for undeveloped commercial land. A specialized commercial earthquake agent will be able to help determine whether coverage makes sense for an undeveloped property, and they
How much does earthquake insurance for a commercial property cost?
The cost of insuring a commercial property against earthquakes depends on many factors. A few details that insurance companies are likely to look at include:
Location and immediate seismic activity
Number of floors and square footage of the building
Construction materials and methods used for the building
Value of the building
There are still many more details insurers are apt to consider, and the calculations done vary slightly from one company to the next. An independent insurance agent can help businesses check which insurance company will give them the best deal for the amount of coverage that their property needs.
How can businesses get commercial earthquake insurance?
For help insuring a commercial property located in California against earthquakes, contact the independent insurance agents at Nichols Insurance Agency. We have the expertise necessary to help you find the right commercial earthquake insurance for your business’s property.
Feel free to contact our independent insurance agents with any questions or concerns.