A Message From Mike Get Ready For
Another Devastating Wildfire Season An
average of 70,000 wildfires are set ablaze across the United States each year.1 What’s even more steep is the rapid growth trend of the average insurance payout
when a wildfire occurs.2 Between the years of 1964 and 1990, the average wildfire in California cost less than $100 million. That payout amount increased to about $600 million each year from 1990 to 2010. From 2011 to 2018, the average wildfire payout amount rose to a stag- gering $4 billion per year and continues to rise. According to data provided by the National Interagency Fire Center (NIFC), as of Aug. 8, 2022, 40,412 wildfires have already burned a total of 5,847,353 acres in the United States.3 The outlook for the remainder of the year is grim.
Wildfire is a serious concern for businesses across the country and one of the costliest
causes of loss for property owners and insurance carriers. It is critical for property owners to take steps now to reduce potential property damage and other insurance claims in the event of a wildfire. The Federal Emergency Management Agency (FEMA) recommends the following steps to prepare for wildfires:
Mike Schofield –
CEO, MiniCo Insurance Agency
Stay Informed Up-to-the minute information is vital in situations where conditions may change rapidly. Wildfires are dynamic events that may change direction and speed without warning. Community warning systems and outlets such as the Emergency Alert System (EAS) and National Oceanic and Atmospheric Administration (NOAA) Weather Radio provide current information. It is also important to know your community’s evacuation plan.
Make A Plan
In the event of a fast-moving wildfire, employees and customers at a self-storage business may need to evacuate the premises. Planning ahead includes creating a detailed plan that identifies multiple evacuation routes and gathering emergency supplies, including N95 respirator masks. It is also wise to take the time to drive the planned evacuation routes and make notes of landmarks since visibility may be limited during a wildfire event. Once the plan is established, employees should be provided training to familiarize them with the routes, supplies, and safety protocols.
Create And Maintain A Defensible Space Doing everything possible to keep fire from spreading to a property is one of the most important steps in pre-wildfire mitigation. Fire-resistant materials are a wise choice for construction, renovation, repairs, and outdoor furnishings such as benches, tables, and signs or decorations. A water defense can be set up using sprinklers and hoses that can reach all areas of the property. In terms of landscaping, establish vertical and horizontal defensible zones by thinning shrubs and trees to create space, ensuring that the crowns do not overlap, and removing low tree branches to separate branches overhead from grass and shrubs. The goal is to create a primary defensible zone by eliminating all leaves, debris, and flammable material within 30 feet of buildings and removing combustible debris from roofs and gutters. This space must be inspected regularly, with ongoing main- tenance performed to maintain this defensible zone. Pre-wildfire mitigation steps as described above can also make a difference in an insurance carrier’s underwriting decision to offer a new business quote or a renewal quote.
As with any risk, your insurance agent can advise you regarding insurance options to help protect your investment. Schedule a policy
review to discuss coverages, limits, deductibles, and exposures as well as business interruption to ensure that exposures from fire have been properly addressed.
1 United States Environmental Protection Agency (July 2022). Climate Change Indicators: Wildfires.
https://www.epa.gov/climate-indicators/climate-change-indicators-wildfires
2 Bloomberg US Edition (Nov. 10, 2020). Wildfires Are Close to Torching the Insurance Industry in California.
https://www.bloomberg.com/news/features/2020-11-10/wildfires-are-torching-california-s-insurance-industry-amid-climate-change
3 National Interagency Fire Center (Aug. 8, 2022). Current National Statistics.
https://www.nifc.gov/fire-information/statistics 6 September 2022 •
MiniStorageMessenger.com
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