Natural Disasters and Home Insurance
Natural disasters can strike at any moment, leaving homeowners vulnerable to the financial damages that they can cause. While standard homeowners insurance shields your home from several natural disasters, it is essential to understand that this policy does not cover every type of disaster. Two types of natural disasters that are typically not covered in a homeowners’ insurance policy are flooding and earthquake damage.Understanding Homeowners Insurance
Homeowners insurance is designed to protect homeowners from financial losses caused by unexpected events such as natural disasters or accidents. The policy typically covers losses stemming from fire, hail, lightning, windstorms, and other types of natural disasters. Homeowners insurance can also provide liability coverage for accidents or injuries that occur on the property. Although the policies may vary, most homeowners’ insurance policies do not cover damage caused by flooding or earthquakes.Inadequacies of Homeowners Insurance
While homeowners’ insurance is necessary and provides a sense of security, it is not an all-inclusive policy. Homeowners must remember that it has its limits, including natural disasters not covered under the policy. As a homeowner, it is essential to understand the risks and how to protect yourself if a natural disaster occurs that does not fall under the coverage of your homeowners’ insurance policy.The Risk of Flooding
Flooding is one of the most common natural disasters in the United States. It can happen anywhere at any time, regardless of whether you live in a flood zone or not. Flood damage can be catastrophic, and the cost to repair the damages can be staggering. Unfortunately, many homeowners mistakenly believe that their homeowners’ insurance policy covers flood damage. However, it is essential to remember that this is not always the case. Did you know?- Approximately 90% of natural disasters in the U.S. involve flooding.
- Even if you live in a low to moderate-risk flood zone, you are five times more likely to experience flood damage than fire damage
Earthquake Damage: Not Covered
Earthquakes are another natural disaster that is typically not covered under a homeowners’ insurance policy. Even if you live in an area prone to earthquakes, your policy will not cover damages caused by them. Standard homeowners’ insurance policies may provide limited coverage for damages caused by falling objects or fires, but they are rare exceptions. Did you know?- In 1994, the Northridge Earthquake caused $20 billion in damages, but only 16% of homeowners in California carried earthquake insurance.
- The 2011 earthquake in Virginia caused an estimated $300 million in damage, but only 2% of homeowners carried earthquake insurance.