How to Reduce Flood Policy Exposure
While flood insurance is a common item in the United States, it is a new product in Canada. Along with this new product comes a new area of exposure and potential loss payout. As an insurer or broker, loss payouts affect profitability and commissions. The initial assessment of a risk is extremely important but after that, what can be done to reduce the potential exposure is of the utmost value to all involved.
Benefits of flood proofing (to the owner)
1. Reduced disruption of business , tenants , home life
2. Reduced potential of loss of non-insurable items (paper work , memorabilia, important documents) or depreciated value inventory
3. Quick return to operational status after an event (reduced business interruption and potential loss of clients in a competitive marketplace)
4. Increased value of property (can be marketed as a flood proofed building)
5. Increased confidence of tenants and residents (easier future rentals)
6. Increased potential in being an insurable property under new flood policies
7. More control over costs and potential exposure to 3rd party liabilities
8. Comfort of tenants and residents that would have no power or heat
Benefits of flood proofing (to the insurer/broker)
1. Reduced amount of loss payouts
2. Minimizes the Claims Loss Ratio (helps commissions)
3. Increases the market for flood insurance (allows for inclusion of previously questionable risk properties)
4. Provides options for purchaser that are not available without preventative measures (promotes sales for unique properties like Golf Courses , Concert Venues , Stadiums )
5. Allows an insurer to cover a portion of a property while advising the client that preventative measures are available for specialty areas on the same property
6. Reduces the overall exposure without any cost to the insurer
7. Preventative measures are the responsibility of the client, not the insurer, along with the ongoing maintenance or upkeep of those measures
At Flood Risk Canada, we provide engineered solutions. From start to finish our service is second to none. Our assessment procedure uses the most up to date mapping technology (LIDAR) to provide the elevations (+- 1/8”) of the subject property. From that, we develop a prevention strategy that considers local flows of water including ice melt, tributary flows, and other localized issues that may affect any potential exposure. We then assess the site for means of ingress, potential equipment failure, and loss of city services (backup strategies for both power and heating, along with a deployment plan. Our associate companies can provide these services on a city-sized scale). Together, with our associate companies, we can put in motion all of the necessary trades and equipment to provide protection and post loss repairs or clean up, as it is necessary.
By using our engineers, consultants, and associates to design a protection program that is specific to a site, you are guaranteed that your insured assets are well protected.
Dave Swan
Calgary , Alberta.
www.floodriskcanada.ca