Does Home Insurance Cover Natural Disasters?
Most people buy a new home, get homeowner’s insurance, and sit back thinking they are protected in the event of a natural disaster. That is what insurance is for, right? Well, yes, and no. The fine print of your homeowner’s insurance is likely to have a list of what is covered, and not a whole lot about what is not covered.
Take flooding, for example. Your policy may state that you are covered from damage by rain. What this means is that you are covered from water falling from the sky. If your roof springs a leak, and you’ve kept up with proper maintenance, then in theory your roof will be covered when it collapses under the pressure of a big thunderstorm. But if that same storm causes the stream that runs through your back yard to overflow and run into your basement, you are most likely not covered for that damage. But wait, the rain from the sky caused the creek to flood, so it is all rain damage, right? Um. No. Rain, by the insurers standpoint, comes from the sky. Flooding comes from the ground. So you are not covered.
This may seem a bit ridiculous, and maybe it is. But it is the reality we as homeowner’s must face. If you do not see it plainly listed on your policy, in writing, then you have to assume it is not covered by your insurance company.
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Posted in Compare Home Insurance , Home Insurance , Home Insurance Claims , Home Insurance Companies April 15th, 2009 Home insurance is a critical aspect of owning a home. With it, you’re protected in the event of major damages. Without it you’re responsible for repairing or rebuilding your home yourself if any damages occur. If you can’t afford that – and most people can’t – you’re still responsible for the demolition of your home. So home insurance makes perfect sense, especially if you live in an area that is prone to natural disasters. If that’s you, you’ll probably have to pay extra for protection from natural disasters. Home Insurance Insures Against Natural Disasters Let’s say you buy a home in Homestead, Florida. It’s a wonderful community, and like the rest of Florida, it’s known for its wonderful climate and easy-going way of life. But it’s also known for the damage it has suffered from major hurricanes. Hurricane Andrew, for example, resulted in billions of dollars in storm-
