Analysis brought to you by theexperts at FC&S Online, the unquestioned authority oninsurance coverage interpretation and analysis for the P&Cindustry. To find out more, visit the National Underwriter website, orcontact the editors viaTwitter: @FCSbulletins.

In light of the devastating effects of Hurricane Harvey, itseems appropriate to consider one of the more horrifying aspects ofdestruction and clean-up that will ensue at cemeteries.

Climatic disasters can wreak havoc on the normally pristine andserene grounds of a well-kept cemetery. While tornadoes, droughtsand earthquakes are climatic disasters that can cause damage, ahurricane carries with it multiple damaging effects including highwinds, storm surges, flooding and mudslides.

Hurricanes cause damage to vegetation and trees from winds,surging water and salt water spray that can result in treestoppling, ground erosion and plant damage or destruction. Blowingdebris and sand can crush or scour monuments; moving water candeposit parts of buildings, sheds, autos and boats, along with mudand other organic materials that can take months or longer to cleanup. Mausoleums, buildings, signs and decorations are oftendisplaced or destroyed, and even vaults and caskets can float tothe surface and be damaged or displaced. The ground can become sosaturated that it becomes unstable with possible mudslides, erosionor sinkholes, in addition to large holes being left from eruptedtrees and open graves.

Related: Underwriting Undertakers

Coverage specifics

Cemeteries present unique exposures and are typically insured byspecialty carriers. The cemetery professional liability coverage will typicallycover damages claimed by third parties as a result of the renderingor failing to render professional services of the owner, operator,management or staff of a cemetery, and liability with regard toemployees and visitors. However, there is no insurance coverageavailable for flood or earthquake perils. So if a loved one'scasket was destroyed or if human remains were displaced as a resultof these excluded perils, would there be coverage?

Commercial property coverage would be availableto cover the buildings and personal property of the insured forloss or damage from a covered cause of loss. However, flood and earthquake are excluded perils underthe commercial property coverage; therefore there would be nocoverage under the standard property form.

Cemetery general liability would provide coverage forwhich the insured is legally liable for bodily injury, propertydamage and personal and advertising injury that occurs on theinsured's premises or as a result of their cemetery operations. Theproducts/completed operations covers bodily injury and propertydamage that occurs away from the insured's premises that is causedby the insured's products or completed work. Since the accidentaldamage or displacement of a casket is from a natural disaster thenthere is no legal liability on the part of the insured and it isnot part of the insured's operations or completed work. Therefore,there would be no coverage under the general liability.

Related: Insuring Funeral Homes: What Could GoWrong?

Insuring the unforeseen

Cemetery professional liability covers negligent errors or omissions for which the insured islegally liable to pay damages resulting from the rendering orfailing to render professional services. The accidental damage ordisplacement of a casket or body due to a hurricane or flood arenot a professional service and there is no negligence on the partof the insured to which they would be legally liable for damagesfrom such disasters. Therefore, there would be no coverage underthe professional liability for damage from a disaster.

The ISO Flood Coverage Endorsement CP 10 65 10 12 is designed tocover buildings and business personal property, including personalproperty in the open that is described in the Flood CoverageSchedule CP DS 65 10 12 for loss due to the peril of flood.However, land is not covered property, nor is the cost ofexcavations, grading backfilling or filling. Therefore, there is nocoverage for the cost of restoring or remediating land due to thecollapse or sinking of land caused by or resulting from flood.Further, coverage is excluded for any building or other propertythat is not eligible for flood insurance pursuant to the provisionsof the Coastal Barrier Resources Act, 16 U.S.C. 3501 et seq. andthe Coastal Barrier Improvement Act of 1990, Pub. L. 101-591, 16U.S.C. 3501 et seq.

Government assistance

There may be assistance for disasters if the damageis caused by a Presidentially declared disaster throughFEMA. FEMA funds may be available to help public (city,county or state) and non-profit cemeteries clean-up, remove debris,and make repairs.

The state's local StateHistoric Preservation Office (SHPO) may be able to provideadditional assistance or grants. Unfortunately, relatively fewSHPOs have personnel with specific knowledge of cemeterypreservation. Another source of SHPOs is the National Conference ofState Historic Preservation Officers NCSHPO.

Following Hurricane Katrina in Louisiana, FEMA ReintermentAssistance was established to make available FEMA disasterassistance for reinterment efforts in Louisiana cemeteries, wherefloodwaters dislodged or destroyed caskets, vaults, andmausoleums.

The guidelines established under the FEMA Reinterment Assistancediffers for public cemeteries and private cemeteries. It is unknownif the same disaster assistance is available in states other thanLouisiana, but survivors can obtain information through FEMAs website(DisasterAssistance.gov) or call the FEMA helpline forassistance at 800-621-3362.

Karen L. Sorrell, CPCU is an editor with FC&S®, thepremier resource for insurance coverage analysis. She has anextensive background in commercial insurance underwriting. She maybe reached at [email protected]. Additional information aboutFC&S Online is available at www.NationalUnderwriter.com.

See also:

5 things to know about insurance coverage afterHurricane Harvey

Determining business interruption lossesafter Hurricane Harvey