Natural disasters are on the rise: how does my insurance cover these damages?
Unfortunately, over the past thirty years or so, the frequency of natural disasters has increased dramatically. Floods, forest fires and other signs of nature on the rampage are on the rise. In recent weeks, stronger than usual winds have also proven worrisome. How are we protected in the event of damage to our homes, land and businesses?
Your home insurance covers you against natural disasters, depending on several factors.
If you need to evacuate your home, you’ll have to find lodging, food and possibly clothing.
Your basic home insurance policy may cover these additional living expenses in the event of an evacuation. However, not all natural disasters are automatically covered. Two endorsements cover floods and earthquakes. Unfortunately, if you live in a flood-prone zone, this added protection may not be offered. Municipal authorities can provide you with more information about this and certify the status of your residential area.
Damage to your home must be dealt with quickly to avoid complications. It’s a good idea to have a personal emergency fund to meet unexpected costs. Before compensating you, your insurance company will consider several factors such the coverage you’ve chosen and the nature of the event.
It’s important to be aware that windstorms, hail, lightning and forest fires are covered by your basic insurance.
We invite you to check with our advisors to find out what is covered by your basic insurance and by your endorsements. How much are you insured for? What exclusions and deductibles apply? It should all fit within your budget and risk tolerance.
For farmland, insurance offers solutions to financial losses caused by natural disasters.
Crop insurance limits financial losses due to yield reductions or damage caused by weather conditions. Compensation is calculated according to the specifics of the situation. Crop and area affected, date and cause of the damage, estimated loss and harvest date will all be taken into account. In the agricultural sector, Malouin Assurance insures inputs (harvested produce, seeds, fertilizers, etc.). Financière agricole du Québec is responsible for everything that’s actually in the fields themselves. Financière agricole du Québec also offers programs to enhance protection for producers.
These include the AgriStability program, and AgriRecovery (Mapaq), which responds to disasters. We’re proud of our farmers, who are the guarantors of our future. That’s why we’re working together to offer them the best possible working conditions.
Business interruption insurance could save your business in the wake of a natural disaster
If you find yourself forced to shut down or halt production for a while, business interruption insurance will make all the difference. It will compensate for a sudden reduction or loss of income. Its coverage could reduce your additional costs and limit your losses. We’ll help you get back up and running as quickly as possible.
For all damage to the building housing your business, you can refer to the information described above. Coverage will be similar to that offered for your home, with a few exceptions.
Does this reassure, inform and guide you? We hope so, but we’re always available to answer any additional questions. There are specifics for every situation, and we’ll be happy to explore solutions with you. We hope you enjoy the bounty of nature without ever having to add the word “disaster” in front of it!
