Natural disasters like mudslides, earthquakes, and wildfires can cause major damage to your home. Even worse, they can rip through a neighborhood and completely destroy your home and your neighbor’s in a matter of minutes. Protecting your home from wildfires and other catastrophes is only growing more critical. What do you know about your home insurance and natural disasters? Does insurance cover natural disasters? And if so, which ones? Let’s find out.
What Natural Disasters Does Homeowners Insurance Cover?
The possibility of a natural disaster is one reason you should get homeowners insurance now. When you think of a natural disaster, a large wildfire or hurricane might come to mind. However, due to climate change, the following natural disasters are occurring more frequently:
- Wildfires
- Hurricanes and tornadoes
- Lightning
- Ice, snow storms, and deep freezes
- Volcanic eruptions
- Wind and hail
- Flood damage
- Landslides and mudflows
- Sinkholes
Does home insurance cover these natural disasters? A basic homeowners insurance policy typically offers some protection against certain types of natural disasters.
Wildfires
Most homeowners insurance covers damage caused by home fires and wildfires. However, if you live in an area prone to wildfires, your policy may specify wildfire as an excluded peril. California’s wildfire crisis is causing insurers to cancel policies. Check with your insurance provider to determine whether wildfires are a risk they cover.
Hurricanes and Tornadoes
High winds, hail, and wind-driven debris can cause tremendous structural damage from hurricanes and tornadoes. Most home insurance covers these natural disasters to a degree. Most cover the damage from wind and hail, though rain damage or flooding are generally not covered.
Lightning
Home insurance typically covers damage to your dwelling or belongings caused by a lightning strike.
Ice, Snowstorms, And Deep Freezes
Generally, damage caused by ice, snowstorms, and extreme cold is covered by homeowners insurance, so long as the homeowner takes reasonable precautions. However, if negligence or poor maintenance is proven, coverage will be denied.
Volcanic Eruptions
The ash, dust, lava flow, and fire produced by a volcanic eruption are typically covered by home insurance. However, any tremors or landslides are not.
Wind and Hail
Homeowners insurance policies generally cover wind and hail damage. However, in locations prone to severe windstorms or hail, you may be required to purchase additional coverage.
Does your insurance cover natural disasters? Reviewing your policy is the best way to learn the details of your coverage.
Which Disasters Are Excluded from Homeowners Insurance?
Certain disasters are specifically excluded from a basic homeowners insurance policy. Natural disasters that involve the movement of the earth, such as earthquakes, landslides, mudslides, or sinkholes, are usually excluded from homeowners insurance. Flooding, such as a flash flood from a sudden rainstorm, is also not covered under most policies.
You might be able to add coverage for some excluded natural disasters. This depends on where you live and what policy additions are available through your insurance company.
For example, while earthquakes are usually not covered in a basic homeowners policy, you could potentially add coverage for earthquakes for an extra sense of security. It’s important to note that the state of California requires every insurance company doing business in the state to provide an option to add earthquake coverage.
Do You Need Natural Disaster Home Insurance?
As we’ve seen, although homeowners insurance covers most natural disasters, some significant exclusions do exist. Determining whether you need additional natural disaster home insurance involves understanding your current coverage, assessing your risks, and exploring additional policy options.
Review your homeowners policy and list any questions you have about it. Then, consider the likelihood and potential impact of excluded disasters in your area. For instance, earthquakes in Wisconsin are minor and rare; however, flooding is common. With this information in hand, contact your insurance agent. They can explain your current coverage, identify any exclusions or gaps, and advise on the natural disasters most likely to affect your region. Finally, your insurance agent can advise you about any natural disaster home insurance endorsements they offer and recommend other coverage.
How do I File a Claim After a Natural Disaster?
First things first: prioritize the safety of your household, neighbors, and pets. Evacuate if necessary. Return to your home only when local authorities or emergency personnel have determined the area to be safe.
- Assess the damage to your home. Once inside, start taking pictures or videos of the damage. You’ll want to document as much of the damage as possible.
Some policy conditions require you to take appropriate, reasonable action to prevent further loss. This could include tarping a roof, boarding up broken windows or doors, removing debris, or removing dangerous conditions that could lead to injury, such as broken glass or wood planks with exposed nails. - Contact your insurance company. Call the claims service department as soon as possible to begin the claims process. Most natural disasters affect many homes at once, so be aware that you might not be the only person trying to file a claim.
A claims professional will help you with the next steps in the claims process. This is a great time to ask any questions about the process and what you can expect going forward. - Make temporary repairs to prevent further damage. If the disaster opens the potential for more damage, you should make temporary repairs. For example, shut off a leaking water pipe as soon as soon as possible after an earthquake to limit continued water damage.
- Filing the claim with the insurance company. Gather all the required information, including your policy number, the detailed list of damages you’ve compiled, photos, videos, and receipts. Then, complete the forms your insurance company provides and attach your documentation.
- Work with the adjuster. Schedule an appointment for the insurance adjuster to inspect the damage to your property. You should be present for the inspection to verify that all damage is noted and addressed.
- Repairs and restoration. Wait for your insurance company’s approval before beginning any significant repairs. Work only with reputable contractors who rebuild according to local codes.
- Finalize the claim. Review the settlement documents to ensure you understand all facets. Then, you’ll receive the payments and use them for the planned repairs.
Major natural disasters could leave you without a home for some time while it’s repaired or rebuilt. Most homeowners insurance covers some of the cost of temporary housing, such as hotel stays. Keep your receipts during this time to help you take advantage of these benefits.
Tips for a Smooth Claims Process
When you’ve experienced a natural disaster, home insurance can make you whole. The process will go more smoothly if you remain organized. Document all your conversations and maintain a file with all the forms, notes, photos, receipts, and questions related to your claim. Stay in touch with your claims adjuster and follow up regularly. The key is to remain polite and involved.
How Can I Protect My Home and Belongings Against Natural Disasters?
While home insurance does cover natural disasters in many cases, advanced preparation can help you protect your home and family if disaster strikes.
One of the best ways to protect yourself is to build a home emergency kit and make a plan in case of a natural disaster. Your emergency kit should include items like spare clothing, plenty of water, and nutritious, non-perishable food items. Practice your emergency plan with your family to ensure everyone knows what to do and where to meet if a natural disaster strikes.
It’s a good idea to review your homeowners insurance policy before you’re faced with damage from a natural disaster to ensure you have adequate coverage. Contact your friendly Wawanesa agent to check your policy and add additional coverage if necessary.
Frequently Asked Questions (FAQ) About Home Insurance and Natural Disasters
Let’s address some of your most frequently asked questions about natural disasters and home insurance.
Why doesn’t homeowners coverage include flood insurance?
In the 1940s, 1950s, and 1960s, a series of catastrophic flood disasters occurred, requiring enormous insurance company payouts. To remain solvent, private insurers elected to drop coverage for floods. In 1968, the federal government created the National Flood Insurance Program, which provides flood insurance to homeowners.
How can I find out if my home insurance covers specific natural disasters?
The best way to learn exactly what your homeowners insurance covers is to read the policy and then speak with an agent to address your questions.
What is a deductible, and how does it affect my coverage for natural disasters?
An insurance deductible is the amount of money you must pay toward a claim before the insurance covers the rest. For instance, if you have a claim for $25,000 with a deductible of $1,000, your insurance company will pay the remaining $24,000.
Can I add coverage for natural disasters to my existing home insurance policy?
Yes, you can add coverage for natural disasters to your existing home insurance policy. Often your provider can sell you an endorsement to cover earthquake insurance or other disasters. However, you can also purchase natural disaster home insurance from other companies as well.
