Does Home Insurance Cover Natural Disasters?

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-related damage. Because of this regional propensity for damaging hurricanes, home insurance providers will charge you more for hurricane and storm protection. It will most likely not be a part of your basic, comprehensive home insurance. Conversely, Homestead is not known for its earthquakes. Due to the low risk of earthquake damage, most home insurance providers won’t have a problem offering earthquake insurance as part of their basic home insurance coverage. Not so if you are a home owner in Los Angeles, California. This is an area that has a well-known record of earthquake activity, and insurance companies will cover their financial bottom line by charging more for earthquake insurance. The real estate saying “location, location, location” is equally applicable to the home insurance industry.

Consult with a Home Insurance Expert

If you’re wondering whether your home insurance covers natural disasters, be sure to consult with a representative of your insurance provider. Additionally, a very smart resource for home insurance coverage in your area is your state’s department of insurance website. There you can learn all about the various guidelines specific to your state’s home insurance rules and regulations.