Impact of A Sharknado As It Pertains To Insurance Coverage
With the recent concern over the movie phenomena Sharknado, I thought it would be a good idea to share the impact of this potential storm from the insurance perspective. Before we begin, we need to define this new peril. So what is a Sharknado? Actually it is a fictitious storm that starts with a waterspout that pulls sharks from the ocean up into the storm funnel-cloud with potential speeds of 50 mph. From a tornado perspective, the winds are usually around 100 mph, but can reach upwards of 300 mph. Plenty of speed to toss a shark several miles at high velocity. Now let's take a moment and review some of the potential claims.
Hey A Shark Crushed My Car! - When you walk outside from the after-effects of a Sharknado and find a 250 lb bull shark on the hood of what is left of your vehicle, you might start to think about your auto insurance policy. Some might think at first collision insurance is the coverage you needed; however comprehensive is the actual coverage that pertains to this peril. So, if you did not have comprehensive insurance on the vehicle you would not be covered. Oh, and if your car was hit by a 1500 lb great white, then just go by a new car I guarantee your old one is totaled.
A Shark Bit Me While I Was Working on My Job! - Yes imagine being one of the men told by your boss to go down in the sewer to turn off a flood control valve only to be bitten by a shark. You might think medical insurance would cover this potential claim; however, the first insurance coverage of choice would be Workers Compensation. Yes, the company's workers compensation policy would be the appropriate coverage. So make sure your company has workers compensation before traveling down in the sewers during a Sharknado.
Water Flooded my Business From a Sharknado! - Not a happy time for sure, but if you have flood insurance on your building and contents, you can smile in a few months. Flood waters are not covered by property insurance or a standard homeowner policy. You must purchase a specific flood insurance policy for this coverage. Make sure you verify your limits for both your property and contents coverage.
Crashed My Truck Into a Telephone Pole During the Sharknado. - Hopefully no one was injured during this incident. Physical damage to the vehicle would be covered by collision insurance. Your policy states that when your vehicle collides with another object collision coverage pays for the damages. Just make sure you check your deductible.
Hey, My Building Has Been Destroyed From Flying Sharks! - Not the usual call an insurance customer service representative receives on a daily basis, but your commercial property should cover the damage from flying sharks. Your policy will have limits for the building and personal property. So make sure you review your limits to determine the amount of coverage. One more thing you should remember, your business might be closed for several weeks for repairs so make sure you have business income and extra expense coverage to help you through the next several weeks until you get everything fixed.
Thank goodness Sharknados are fictitious, this could have created another huge impact on the insurance industry. As most insurance companies and agents know, we will rise to the occasion to make sure our industry provides the proper coverage for risks as they occur. Hope you have enjoyed this blog.