Understanding the Significance of Live Asset Insurance

Anybody in the tri-state area would be able to tell you about the hectic weather we had this past June. Sweltering heat, severe thunderstorms, and everything in between wrecked havoc in our daily lives, or so it seemed. While I found myself on a quest for air conditioning one week, the following week I found myself scampering out of the rain in search of shelter. I bet many others have felt the same way I have, however, from what I have witnessed; people have not been the only ones being affected by this extreme weather.

While reading the June 18th New York Times I came across an article that discussed the tree damage in Central Park during a mid-June storm.New York Times In total, the park lost 33 trees, including a handful of trees that were three to four feet in diameter. There was a considerable amount of maple trees damaged, as well. At the same time, I saw dozens of trees down in my town of Stamford, CT. I even had to change driving routes three times one night due to road blockades as a result of fallen trees! However, the extreme weather damage in the tri-state region paled by comparison to nationwide events.

Flooding in the Midwest dominated the news; displaced thousands, and will end up costing billions of dollars. According to a study done at Ball State University the total crop damage could reach $2.7 billion. The following week, it was the ballooned Mississippi River that we saw all over the news. On June 19th CNN.com reported that eleven levees, both natural levees and man-made, on the Mississippi have been breached around St. Louis. The number of overflowed levees was up to twenty in Iowa and Missouri alone. CNN.com The damage caused by the flooding of the Mississippi had already ruined 25,000 acres of crop in Adams County, Illinois, while flooding in Oakville, Iowa, covered over 20 square miles of crop fields.

While the trees lost in Central Park were miniscule in dollar value to the crops lost in the Midwest, each loss could have been remedied through Live Asset Insurance. For example, the trees in Central Park could have been insured and replaced with replacement trees of the same size and species. Crops lost from flooding in the Midwest could have been replaced as long as they were inventories insured under our live asset policy.

The trees in Central Park are gone and farmers in the Midwest are left to rely on their Federal Crop Insurance policy. However, they are going to suffer greatly due to its high deductibles and nominal protection. With Live Asset Insurance, the covered live asset would be subject to replacement from the tornadoes and flooding. The trees in Central Park could be replaced, along with the covered crops in the Midwest. Unfortunately, they are lost forever.

While Live Asset Insurance is not yet available nationwide, these natural disasters show how a catastrophic loss can effect the lives of so many. Don’t get caught in Mother Nature’s crossfire! Protect your important live assets.