Does My Home Insurance Cover Me For Natural Disasters?

We’ve already given you some handy tips on picking insurance policies. Are you looking into home insurance and wondering what it covers? If you live in an area that’s prone to earthquakes, floods, hurricanes or tornadoes, it’s good to know what home insurance includes after a natural disaster. So let’s help you be prepared, even for the worst case scenarios. 

Type of Disaster

In short, your home insurance policy coverage is largely dependent on the type of natural disaster. While a standard home insurance policy will help you out in the aftermath of various catastrophes and damages, some disasters aren’t included. You’ll need separate coverage for these.

It’s important that your policy covers you sufficiently to assist in recovering your losses, so double check with your broker or policy breakdown what exactly your coverage includes. Don’t be caught unawares. 

What Disasters Are Covered?

If you’re a condo owner, homeowner or renter you should be covered against damages from most disasters such as fires, hurricanes, rain, severe storms, tornadoes and wind. Your home insurance will typically pay out the costs for property structural repairs up to the amount you’re insured. 

But what about other aspects of your property?

• Detached structures, such as a garden shed or garage, are usually covered at about one tenth of the insured amount of your main dwelling structure.
• Home insurance should also cover your household possessions. This coverage is usually for up to or more than half of your home structure’s insured value. 
• Trees and shrubs are usually paid out per item.
• Condo insurance pays out for indoor possessions. Some structural features such as  drywall are also included. It’s normally the condo association insurance that pays out for building damages.

Should you be renting a property, only your possessions will be covered by renter’s insurance in the event of a natural disaster. Appliances are often excluded. Check with your landlord what structural features of the property are covered by their insurance.

What Disasters Are Excluded?

Flooding and earth movement damage isn’t covered by home insurance. As a condo owner, homeowner or renter you won’t receive a damage payout for floods, earthquakes, landslides, mudslides and sinkholes.

In order to be covered in the event of these natural disasters you need to purchase a separate insurance policy from either the National Flood Insurance Program (NFIP) or a private insurance company. Back in 2017, the NFIP flood damage payouts after Hurricane Harvey totalled nearly $9 billion.

 It’s important to note that your possessions won’t be covered in the flood policy. You’ll need separate coverage for those.

The same applies for earthquakes. You’ll need a separate policy from a private insurance company. Those residing in California can consult the California Earthquake Authority. Depending on where you live, separate insurance coverage might pay out for sinkhole damage.

If you’re based in a coastal state where certain weather conditions such as windstorms are common, coastal programs can benefit you. You can buy back a policy through your state’s program if a windstorm is excluded in your home insurance policy.

Final Thoughts

If you’re unsure about the next step, contact a company such as Allstate home insurance for a quote today. Put your mind at ease by talking to an agent about what your specific policy could include as well as the exclusions requiring additional cover. You CAN be prepared, no matter what happens.