Earthquakes can wreak all sorts of havoc on golf courses. Not only do they affect the fairways, greens, and roughs, but they can also cause extensive damage to structures like water towers. Take the leaking of Augusta National’s water tower after the 2014 Georgia earthquake as an example.
That’s why it’s important for golf course owners to prioritize not only obtaining robust earthquake insurance coverage but also ensuring resilient foundations for their structures. In this article, we’ll talk more about earthquake insurance and answer frequently asked questions about earthquakes and golf courses.
What Is Earthquake Insurance Coverage?
As the name implies, earthquake coverage provides financial protection against damage or loss specifically caused by earthquakes. Earthquake insurance for golf courses typically covers various aspects, including but not limited to structural damage to buildings and infrastructure, damage to golf course features, irrigation systems, landscaping, and other course amenities.
In addition to property damage, some policies may also offer business interruption coverage. This coverage helps compensate for income loss and additional expenses incurred due to temporary closure or reduced operations resulting from the earthquake.
What Does It Not Cover?
Here are some common exclusions found in earthquake insurance policies:
Land: Earthquake insurance policies usually exclude coverage for land damage, such as sinkholes caused by erosion or hidden openings beneath the ground. Policyholders may be able to purchase limited additional coverage specifically for land restoration or stabilization.
Flood: Earthquake insurance does not generally cover water damage caused by external factors like sewer or drain back-up, floods, or tsunamis. Separate flood insurance policies are required to cover such damages.
Vehicles: Policyholders should refer to their auto insurance policy to determine if it includes sufficient coverage for earthquake-related vehicle damage.
Routine Maintenance: Costs related to routine maintenance, repairs, or wear and tear that are not directly caused by earthquake damage are generally not covered. Regular maintenance responsibilities fall under the golf course owner’s responsibility.
How to File a Claim?
If your client suspects or discovers damage caused by an earthquake, they have to follow these steps:
- Report the claim by contacting their insurance company via telephone or through the designated reporting channel.
- The insurance company must open a claim upon receiving the report from the policyholder.
- If the insurer refuses to open a claim, the policyholder should promptly contact the state’s insurance department for immediate assistance.
- Insist on a claim adjuster being assigned.
- Schedule an inspection at the earliest opportunity.
- Show all damage to the adjuster, including hidden areas.
- Report any additional damage discovered for reinspection.
What Is the Earthquake Coverage Cost?
The cost of earthquake insurance coverage varies based on several factors, including the size of the course, its location, the insured value of the property, and the desired level of coverage. Courses located in regions with higher earthquake risk will, most likely, have higher premiums.
The yearly premiums for earthquake insurance can range from $800 to $5,000, while the deductibles associated with the policy can range from 10% to 20% of the coverage limit.
About T2 Green Insurance
T2Green Insurance provides comprehensive insurance that is customized to your club, resort, or golf management company, from industry professionals whose sole focus is insuring this class. We are dedicated to providing you with innovative products, underwriting expertise, and exceptional results so that your insurance needs are covered with confidence. Reach us at 844-223-9005 with any questions or so we can begin tailoring a package that works best for your club.
