NATURAL DISASTERS (continued) You need to understand what is and, importantly, what is not covered by your policy. For example, not all sources of flooding will be covered by insurance. Typically, flooding from damaged plumbing, burst pipes or appliances will be covered by insurance. However, flooding from storm surge, sinkholes or overflowing lakes will not be covered. If you live in an area prone to flooding following a severe storm, you should obtain additional insurance to cover this situation. The same goes for earthquakes, forest fires and the like. Obtaining additional coverage for these specific perils can be expensive and often comes with a high deductible; however, you may be leaving yourself exposed without it. It may seem like a no-brainer, but make sure that your policy is current! Of course, this includes paying your premiums; however, you will also want to alert your insurance carrier to any renovations or additions to the covered property. You should also be sure to fairly and accurately represent the true value of the property you are insuring. This
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includes not only barns and riding arenas, but also farm equipment, tack, and horses. You may consider taking photographs or videos of the property and its contents. An insured has the duty to represent the true value of such items to the insurance carrier. Failure to do so or misrepresentation can result in the carrier voiding the policy. If you are an equine professional living in an area prone to severe weather, you may also consider purchasing “Business Interruption Insurance.” For those in the horse business, a natural disaster can affect the ability to carry on business and earn income. For example, consider the impact of a tornado destroying your barn and indoor riding area used for training and lessons. If this property is damaged and cannot be used, then you will lose out on income. There are many nuances to this coverage, but business interruption coverage generally can help replace income you lose if you can’t operate your business temporarily after a covered loss. It can also help cover other operating expenses such as mortgage payments, payroll and relocation costs if
you have to move to a new or temporary location. It is important to discuss this coverage an experienced insurance agent to determine what is best for your needs. The bottom line is that natural disasters are unpredictable. The best thing you can do for yourself and your horse is to have a plan in place for every type of disaster. This way when the worst happens, you’ll be prepared to weather the storm. Katherine Jarve is a partner at the Marlton, New Jersey law firm of Jarve Kaplan Granato Starr, LLC. She is licensed in New Jersey and Pennsylvania and maintains a practice in personal injury and civil litigation, including equine related issues. Katherine spent her childhood competing on the national AQHA show circuit. This article is for informational purposes only and is not intended to be legal advice. If you have a specific legal question or problem, consult with an experienced equine law attorney. Questions, comments or suggestions can be e-mailed to kjarve@nj-triallawyers.com.
