Many Americans have seen the West Coast wildfires on the news, but only those on the ground realize the extent of their destruction.
It is critical that insurance agents not only prepare their clients as much as possible to mitigate risks, but they also prepare themselves for the deluge of claims that will follow the blazes.
While wildfire season always brings a sense of panic, this year seems worse than others; in Washington state, fires encompass almost 500 square miles of land and smoke can be seen as far away as Illinois, according to Bloomberg News. At the last measure in mid-August, fires have overtaken 7.2 million acres throughout the country.
And while the number and strength of these fires are disconcerting in and of themselves, the disaster is only exacerbated by the fact that the U.S. does not have a sufficient number of firefighters to combat them. The shortage even takes into account National Guard units that have been deployed and firefighters currently on loan from Canada, Australia and New Zealand.
So far this year, these damages have cost Americans $25 billion out-of-pocket. That could number could potentially triple if a fire burns a populated area, which is where an estimated $237 billion in property resides.
Insurance agents need to act now on behalf of their clients, since many home and business owners unwittingly fall into a precarious position by waiting to buy coverage if the flames seem distant or far off. Many are unaware that once the fire crosses a certain radius, agents may be unable to quote a policy.
In addition,
Kaufman Financial Group suggests on
Insurance Market Source that agents also work with clients in insuring their homes to value, since a true replacement cost may exceed the home’s market value, causing the client to pay substantial funds out-of-pocket.
“After all, a single blaze can destroy a home,” the organization advises.
