Climate change is impacting the frequency, severity, and scale of natural disasters. Insurance providers are taking note, evolving their coverages — and their pricing models — to offer their insureds the necessary protections while also safeguarding their profit margins.
That’s impacting every business and individual carrying property and casualty insurance. Residential Care Facilities for the Elderly (RCFEs), for example, may notice changes from their insurers as their commercial property insurance policies renew.
Rather than taking a passive role — and getting surprised by changes — RCFE owners can collaborate with their insurance providers now.
More Disasters, Bigger Disasters
Incidence rates of floods, wildfires, mudslides, and countless other types of natural disasters have ticked up in recent years. Climate change is a significant driver here, both in terms of the frequency of disasters and in the rising costs to recover from them.
Don’t wait until disaster is on your doorstep to have a conversation with your insurance agent.
Not only are natural disasters happening more frequently, but they’re also getting bigger. While a wildfire might have singed the outskirts of town a decade ago, hotter temperatures, drought-stricken brush, and other climate change-driven factors mean we’re seeing fires rip right through the heart of town. Ensuring that your entire facility is sufficiently covered can mean the difference between reopening after a fire and staying shuttered.
Similarly, climate change is adapting what’s at risk. The Federal Emergency Management Agency (FEMA) has even acknowledged that old flood plain maps are now outdated. In other words, you may need coverages your facility didn’t require in the past.
Talking with your insurance agent means getting a risk analysis and mitigation pro involved. That person can assess your specific facility to make policy recommendations, helping to safeguard you as climate change evolves your risk.
At the same time, as a risk mitigation expert, that person may be able to point you toward measures you can take to improve your RCFE’s resilience in the face of climate change. Taking steps like clearing dry brush and dead tree limbs to create a defensible perimeter can help you protect your facility — and potentially lower your insurance premiums.
Protecting Your Facility and Your Residents
Climate change doesn’t just mean more storms and fires. It also means more days of extreme heat. Elderly residents are particularly vulnerable to this danger. As a facility owner, you need to take steps to protect them.
That means providing ample shade on your property, along with consistently cooled spaces. If residents’ living quarters have localized cooling (e.g., a window AC unit rather than a connection to the facility’s HVAC system), make it a point to do regular performance checks. Staff members should be periodically servicing and evaluating the functionality of any cooling mechanisms your facility relies on.
If you don’t and a resident gets sick from extreme heat, their family could fairly easily mount a successful liability case against you. To defend against that, too, make sure you talk with your insurance provider about the right level of RCFE liability insurance.
Talking with your insurance agent can mean having sufficient coverage should your facility face a disaster. To discuss how to best protect your RCFE against climate change-related risks, call our InsureMyRCFE team at (805) 413-5668.
