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In light of the devastating effects of Hurricane Harvey, it seems appropriate to consider one of the more horrifying aspects of destruction and clean-up that will ensue at cemeteries.
Climatic disasters can wreak havoc on the normally pristine and serene grounds of a well-kept cemetery. While tornadoes, droughts and earthquakes are climatic disasters that can cause damage, a hurricane carries with it multiple damaging effects including high winds, storm surges, flooding and mudslides.
Hurricanes cause damage to vegetation and trees from winds, surging water and salt water spray that can result in trees toppling, ground erosion and plant damage or destruction. Blowing debris and sand can crush or scour monuments; moving water can deposit parts of buildings, sheds, autos and boats, along with mud and other organic materials that can take months or longer to clean up. Mausoleums, buildings, signs and decorations are often displaced or destroyed, and even vaults and caskets can float to the surface and be damaged or displaced. The ground can become so saturated that it becomes unstable with possible mudslides, erosion or sinkholes, in addition to large holes being left from erupted trees and open graves.
Related: Underwriting Undertakers
|Coverage specifics
Cemeteries present unique exposures and are typically insured by specialty carriers. The cemetery professional liability coverage will typically cover damages claimed by third parties as a result of the rendering or failing to render professional services of the owner, operator, management or staff of a cemetery, and liability with regard to employees and visitors. However, there is no insurance coverage available for flood or earthquake perils. So if a loved one's casket was destroyed or if human remains were displaced as a result of these excluded perils, would there be coverage?
Commercial property coverage would be available to cover the buildings and personal property of the insured for loss or damage from a covered cause of loss. However, flood and earthquake are excluded perils under the commercial property coverage; therefore there would be no coverage under the standard property form.
Cemetery general liability would provide coverage for which the insured is legally liable for bodily injury, property damage and personal and advertising injury that occurs on the insured's premises or as a result of their cemetery operations. The products/completed operations covers bodily injury and property damage that occurs away from the insured's premises that is caused by the insured's products or completed work. Since the accidental damage or displacement of a casket is from a natural disaster then there is no legal liability on the part of the insured and it is not 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 Go Wrong?
|Insuring the unforeseen
Cemetery professional liability covers negligent errors or omissions for which the insured is legally liable to pay damages resulting from the rendering or failing to render professional services. The accidental damage or displacement of a casket or body due to a hurricane or flood are not a professional service and there is no negligence on the part of the insured to which they would be legally liable for damages from such disasters. Therefore, there would be no coverage under the professional liability for damage from a disaster.
The ISO Flood Coverage Endorsement CP 10 65 10 12 is designed to cover buildings and business personal property, including personal property in the open that is described in the Flood Coverage Schedule CP DS 65 10 12 for loss due to the peril of flood. However, land is not covered property, nor is the cost of excavations, grading backfilling or filling. Therefore, there is no coverage for the cost of restoring or remediating land due to the collapse or sinking of land caused by or resulting from flood. Further, coverage is excluded for any building or other property that is not eligible for flood insurance pursuant to the provisions of the Coastal Barrier Resources Act, 16 U.S.C. 3501 et seq. and the Coastal Barrier Improvement Act of 1990, Pub. L. 101-591, 16 U.S.C. 3501 et seq.
|Government assistance
There may be assistance for disasters if the damage is caused by a Presidentially declared disaster through FEMA. 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 State Historic Preservation Office (SHPO) may be able to provide additional assistance or grants. Unfortunately, relatively few SHPOs have personnel with specific knowledge of cemetery preservation. Another source of SHPOs is the National Conference of State Historic Preservation Officers NCSHPO.
Following Hurricane Katrina in Louisiana, FEMA Reinterment Assistance was established to make available FEMA disaster assistance for reinterment efforts in Louisiana cemeteries, where floodwaters dislodged or destroyed caskets, vaults, and mausoleums.
The guidelines established under the FEMA Reinterment Assistance differs for public cemeteries and private cemeteries. It is unknown if the same disaster assistance is available in states other than Louisiana, but survivors can obtain information through FEMAs website (DisasterAssistance.gov) or call the FEMA helpline for assistance at 800-621-3362.
Karen L. Sorrell, CPCU is an editor with FC&S®, the premier resource for insurance coverage analysis. She has an extensive background in commercial insurance underwriting. She may be reached at [email protected]. Additional information about FC&S Online is available at www.NationalUnderwriter.com.
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