Are Natural Calamities Covered By Homeowner's Insurance?
If there is one certain thing about life, it is the fact that nothing is certain. While that might sound a bit too philosophical, it is an unfortunate truth. It is also why you need to always be on guard because you stand to lose so much if you’re not. As the saying goes, you should always hope for the best, but prepare for the worst. The most obvious example of that is taking out insurance policies, even if you think you don’t need them since you can never really be sure. But do insurance policies have you covered if anything happens? If you have a homeowner’s insurance policy, would it cover you in case of natural disasters, for instance?
Homeowner’s Coverage
The short answer to that aforementioned question is no, a standard homeowner’s insurance policy probably won’t cover you if your home suffered damage due to an earthquake or a hurricane. This is why you need to take out additional coverage for such events. This does mean additional costs, but you shouldn’t be reluctant with this step because it might save you a lot of money down the line. Your homeowner’s policy probably has you covered in the case of fire damage or if your property got robbed, but if lightning strikes and destroys your roof, you might not be so fortunate.
Understand Your Policy
The best way to put your mind at ease is to go through your coverage so you could understand just what exactly is covered in your homeowner’s insurance policy. There isn’t really a standard plan that all companies follow, and coverage might vary from one to the other. So, you have to know for sure. The coverage providers at WorldCare suggest that you probably need to get separate health insurance, too, because your homeowner’s policy most likely will not cover any medical bills in case you get injured due to a natural disaster. That’s why you need a comprehensive medical insurance plan that can spare you the trouble of worrying about both medical and home repair expenses.
Take Location Into Consideration
You are going to have to take the location of your property into consideration when deciding on which homeowner’s insurance policy to buy. For instance, if you’re living in a landlocked city, with the nearest body of water hundreds of miles away, then you shouldn’t really worry about tsunami and flooding coverage. Unless it is a Hollywood-style natural disaster where waves can travel for hundreds of miles, then you’re probably safe. This is just an example; there are other angles that you have to consider. Is the area you’re living in prone to natural disasters? Is there a history of earthquakes or other calamities that might damage your property?
Most insurance companies will be selling such specific natural disaster coverage separately –– earthquake coverage, for example, is almost always sold separately. If you are tight on money, you should do some research to understand the possibility of natural disasters in your area before you buy coverage that might not be useful at all. Of course, as we said earlier on, nothing is certain, and if you want to buy policies that cover even those remote possibilities because you can afford it, then you most definitely should.
Read the Fine Print
While we talked about understanding your policy earlier, you will have to focus on the fine print when it comes to homeowner’s insurance. For instance, plenty of homeowner’s insurance policies cover damage from a volcanic eruption, regardless of how unlikely that is. This includes damage related to lava flow, ash, dust, and particulate matter. Yet, this coverage doesn’t cover the damage resulting from shock waves or tremors. Flooding coverage also varies depending on the flooding reason, which might not always be covered. This is why it is crucial that you carefully examine each policy to understand those fine details.
Consult an Attorney
It is always a good idea to consult an attorney before taking out insurance policies. They could guide you on what type of coverage you need, and what additional ones to purchase. In any case, if your property did suffer a natural calamity, then you have to enlist the help of an insurance claims attorney as they will help you deal with the insurance company so you could get fair compensation.
You should play it safe and take homeowner’s insurance policies with additional coverage should the worst-case scenario happen. Recovering from natural disasters might prove too complicated if you don’t have a comprehensive insurance policy, so it is best to be prepared. And remember to always carefully examine the coverage so you could make sure it is sufficient.
