Whether you’re renting, buying, or building a home, natural disasters are something to consider when it comes to your insurance coverage. Common natural disasters in the U.S. include:
Hurricanes
Tornados
Floods
Wildfires
Hail damage
Earthquakes
And more
A standard homeowners insurance policy may cover a wide variety of situations, e.g. wildfires, wind, hail, though some natural disasters such as flood and earthquake will need to be added to your policy. To avoid expensive out-of-pocket costs in the face of a natural disaster, you’ll want to add protection for items lost due to fire, flooding and other damages. It’s worth noting that flooding and earthquakes are the most underinsured natural disasters.
Do you live in a high-risk area?
Generally, most natural disasters are not covered by a basic home insurance policy. For those who live in flood-planes, like the southern coast, or in the midwest where tornadoes are common during summer, you’ll want to consider purchasing additional coverage to insure a specific type of natural disaster. Living in a high-risk area for any natural disaster also means that you will most likely be paying more for your general policy to help make up for some of the increased risk.
Storm insurance coverage
Wind damage caused by hurricanes and tornadoes are generally covered by home insurance policies, but flooding damage is not. Flooding is the major cause of costly hurricane damage, making it necessary to add in flood coverage to your policy. Hurricanes are some of the costliest natural disasters in the U.S. and can cause billions of dollars of damage. It’s critical to understand what your policy covers, as there are many claims that are disputed based on how wind and flood damage are defined by individual insurers.
Tornadoes don’t generally cause a large amount of flooding, but talk to your insurance agent to see if they recommend it for your location.
Insuring natural flood disasters
Because flooding can occur due to a handful of situations, flood coverage is not always handled the same way. Various sources of flooding can include:
Rivers
Excess rain
Plumbing issues
Storms
Remember that most, if not all, homeowner policies exclude flood-related damage. Flood damage can be so costly and extensive that it’s a smart add-on. Don’t let flooding damage put your finances under and open your house to mold and other health risks. All types of natural disasters can cause costly damages, but flooding is especially nefarious.
Wildfire damage protection
Wildfires are becoming increasingly common in the U.S., making the need for wildfire coverage more critical than ever. Standard policies in high-risk areas typically cover the damage that happens to your home and belongings. Keep in mind that some insurers do not offer wildfire protection in high-risk areas. If you are in a high-risk area, make sure that you understand what if you’re covered, what is covered, and how much is covered.
Know how your home insurance protects you from natural disaster damage
Insurance can be complicated and it’s essential to understand what is protected under your policy and isn’t. When you live in a high-risk area—whether it’s for hurricanes or tornadoes or wildfires—you’ll want to be familiar with your coverage, additional add-ons to protect your home, and speak with your agent to know what will happen in the event of an emergency. Don’t let a natural disaster wreck you financially due to not understanding your policy’s coverage.
Questions about flood insurance or other natural disaster coverage? Contact Wallace & Turner at (937) 324-8492 in Springfield, (937) 652-8492 in Urbana, or info@wtins.com.
Guest post authored by David Cruz