Home Insurance and Natural Disasters: A Comprehensive Guide

Home insurance is a crucial aspect of responsible homeownership. These policies can provide multifaceted financial protection against unexpected damages and losses that may occur due to various reasons, including natural disasters.

However, a standard homeowners insurance policy does not cover every natural disaster. Understanding what is included in your home insurance and whether you need special coverage for certain natural disasters is essential in ensuring your home, assets and finances are sufficiently covered.

What Natural Disasters Are Covered By Home Insurance?

Home insurance policies can often cover many common natural disasters, also known as perils. While exact details may vary depending on your needs, preferences and budget, as well as the homeowners insurance carrier with whom you work, the following perils may be included in standard policies:

• Hail—Hail can inflict significant damage on your roof, walls and windows, but homeowners insurance may help pay for repairs.
• Lightning strikes—If lightning strikes your home and causes damage, your policy should generally cover it.
• Explosions—This may include natural gas explosions in or around your home, which could result in total losses and the need for a complete rebuild.

Do I Need Special Coverage for Natural Disasters?

Depending on where you live and the natural disasters common to your area, you may need to consider purchasing additional coverage to ensure ample protection for your property and financial interests. Consider the following natural disasters that typically require special coverage:

• Flood insurance—Standard homeowners insurance policies do not cover damage caused by external water entering your home, such as due to heavy rains or overflowing bodies of water. As such, if you live in a flood-prone area, you should consider purchasing a separate flood insurance policy.
• Windstorm insurance—While sometimes included in standard policies, many homeowners in areas at high risk of hurricanes and wind-related losses may need additional coverage.
• Earthquake insurance—Coverage for earthquakes is not typically included in a standard homeowners insurance policy. If you live in an area prone to earthquakes, you may want to consider a separate earthquake insurance policy.
• Landslide insurance—Landslides are often not included as a covered peril in standard home insurance policies. However, you can usually augment your coverage with endorsements and additional features similar to those you might need for earthquakes.
• Wildfire insurance—Although fires started in your home or by other parties are generally included in standard home insurance, some insurance companies have started to exclude wildfires in high-risk areas.

How to Ensure Your Home Insurance Covers Natural Disasters

While home insurance provides a significant level of financial protection against many natural disasters, standard policies may not cover everything. Homeowners should review their policies carefully, understand what perils are covered, and consider additional coverage if necessary.

Contact the knowledgeable and dedicated team at Lord & Associates Insurance Agency today to learn more about coverage options or to compare personalized insurance quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.