Demont Insurance Agency Blog

Do I Need a Type of Natural Disaster Insurance?

Extreme weather and wildfires caused 2017 to be the costliest year for United States disaster relief. The hurricane region experienced three significant storms; Harvey, Irma, and Maria, while residents on the West Coast dealing with record-breaking wildfires that destroyed homes, businesses, and natural resources. Plus, there were also many other natural disasters that took place, including flooding, tornadoes, and severe storms with harsh winds.

According to the National Oceanic and Atmospheric Administration, these disasters cost a total of $306 billion in damages. There were 16 natural disasters that cost more than $1 billion each in repairs. However, the most damage was caused by hurricanes and repair costs were estimated to be around $256 billion.

Is Natural Disaster Insurance Necessary?

2017 was a historic year for record-breaking billion-dollar natural disasters. And you can be sure that we will see similar events in the years to come. If you live in an area that is prone to bad weather, you may be wondering if you need to take out an additional form of insurance to cover these momentous natural disasters. However, if you think that your current Homeowners Insurance policy will take care of the damage caused by major disasters such as flooding or hurricanes, you could be in for a big surprise.

Homeowners Insurance Doesn’t Cover All Natural Disasters

Standard Homeowners Insurance policies cover a broad range of situations such as house fire damage or theft. But they don’t always cover damage caused by natural disasters such as earthquakes or hurricanes. Although all insurance companies and policies are different, the majority of Homeowners Insurance plans currently available do not provide coverage for damage caused by natural disasters.

While a standard Homeowners Insurance plan may not cover natural disasters such as hurricanes, most policies will cover damage from tornadoes since it is considered wind damage. Water damage that may have been a result of a tornado is also included.

If you live in a high-risk area that is known for flooding, heavy winds, and severe storms, and your Homeowners Insurance policy does not cover damage caused by these events, it would be in your best interest to take out a supplemental plan.

Damage Caused by Flooding – Is It Covered?

Damage to your home caused by flooding can be tricky because multiple sources of water can contribute to the problem. Your home could become damaged because of a coastal surge, or the damage could be due to a faulty plumbing system. And while those two events may cause the same type of damage, they require two different types of insurance coverage.

Most standard Homeowners Insurance plans do not offer coverage for flood-related damage caused by the weather. However, a standard home insurance plan will cover the cost of damage caused by a plumbing disaster such as burst pipes.

If you want to purchase insurance that will cover the cost of flooding due to heavy rain, you will need to buy a Flood Insurance policy separate from your Homeowners Insurance plan.

Those who live in the Atlantic or Gulf Coast area can purchase supplemental insurance known as Beach and Windstorm insurance to protect their home from hurricanes and other related storms.

Earthquake Insurance Policies are Affordable in Low-Risk Areas

Earthquake Insurance is essential for those who live in areas known for seismic activity. This coverage must be purchased as a separate plan as well. Homeowners who live in areas that are not known for earthquakes have the option to buy this type of insurance if they want, usually at a very low premium.

Supplemental Insurance for Volcano Damage

Homeowners who live near active volcanoes such as in Hawaii and parts of Washington must purchase additional coverage to pay the price of volcanic disasters. Oddly enough most Homeowners Insurance plans in all other, low-risk areas will cover damage caused by a volcanic eruption. Even if you live thousands of miles from any active volcano, it is likely that your current Homeowners Insurance plan will cover the cost of damage caused by ash, dust, lava flow, tremors, and landslides.

Be Prepared for Storm Season

No one anticipates for a natural disaster such as a hurricane or flood to destroy their home. But as 2017 confirmed, it can happen. And repair work after a storm is not cheap. Find out today what your standard Homeowners Insurance policy covers, and what type of damage it doesn’t so that you can purchase the right kind of natural disaster insurance to keep your home protected.

To learn more about natural disaster insurance and if you need it, contact the experts at demontinsurance.com at (800) 522-1997. Our licensed insurance experts will be happy to answer any questions you have

 

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