How Home Insurance Can Save You During Natural Disasters 

Between hurricanes, floods, and tornadoes, people may wonder just what their home policy will cover. When it comes to home insurance and natural disasters, it’s helpful to know where you stand with your policy. If you get hit by Mother Nature’s wrath, you may question, “Does home insurance cover natural disasters?” Let’s look into this important topic to determine how your home coverage may work. 

Assessing Home Insurance Coverage Amidst Mother Nature’s Wrath 

When Mother Nature strikes, one of the first things you may do is check your home property coverage. However, it could be difficult to assess just what is and isn’t covered. You may not be comfortable reading your homeowners insurance policy documents. You can always call your insurer for information, but in the meantime, there are certain claims that most standard policies will cover. So, whether you’re dealing with the ravaging winds of a hurricane or tornado or the surging flood water, a homeowners policy comes in handy. 

What Home Insurance Traditionally Covers 

You may wonder, what is homeowner’s insurance, and what does it entail? A standard policy has several sections that address various damages you may incur. It will cover most types of damage that occur to your dwelling, other structures, personal property, and liability issues. The elements listed in your policy typically include: 

• Dwelling: This section of your coverage involves your home’s structural aspects. It may also include things like an attached garage or porch. 

• Other structures: If you have other buildings or structures on the property, they will be covered by this part of your policy. This can include things like a separate shed, pool building, etc. 

• Personal property coverage: If the interior of your home experiences damage, you may need to replace some of your personal belongings. This can include items like furniture or clothing. 

• Liability: If someone gets injured on your property, this part of your policy will help protect you from liability costs. 

• Additional living expenses: Sometimes, a home is uninhabitable after sustaining damage. In this case, your policy will help cover living costs. 

Standard Inclusions: Fire, Lightning, and Tornadoes 

What does homeowners insurance cover? Standard inclusions for a policy include fire, lightning, and tornadoes. The types of situations included under the policy are listed as covered perils. 

Perils Typically Covered 

Perils involve an event or situation that may result in property damage or loss. Your policy will state which perils will be covered. However, typical perils include: 

• Windstorms and hail 

• Fire and smoke damage 

• Theft and vandalism 

• Water damage (but only from certain sources, like burst pipes) 

• Falling objects (such as a tree hitting your house) 

The Fine Print: Limitations and Exclusions 

Every insurer will also have limitations and exclusions. So, it’s best to talk to your agent about the specifics. However, most standard policies exclude things like the following: 

• Earthquakes 

• Landslides 

• Pest damage 

• Mold and mildew damage 

• Power failure damage 

• Floods 

When Natural Forces Overpower — The Exclusions List 

If you think Mother Nature may strike in such a way as to overpower the exclusion list, you do have choices to stay protected. You can purchase a separate policy that will cover any of the exclusions you think might be relevant to your area. 

Floods and Earthquakes: A Separate Policy Matter 

Two common policies that are add-ons to standard homeowner’s protection are flood and earthquake insurance. These optional policies give you peace of mind if you’re in an area prone to these situations. 

Hurricanes and Wind Damage: Decoding Deductibles 

If you experience hurricane damage and file a claim, be aware that most policies have a separate hurricane insurance — or tornado insurance — deductible. This is separate from the standard deductible you will have with your policy. A hurricane deductible may be percentage-based and range from 1% to 10% of your home’s insured value. Or they may be flat-dollar deductible. However, percentage-based deductibles are more common. 

Additional Protections for High-Risk Zones 

If you live in a high-risk area, you can discuss adding separate policies and coverages to ensure that you are protected. You don’t want to experience a natural disaster and also find out you didn’t have adequate protection. 

Federal Aid and the National Flood Insurance Program (NFIP) 

Floods can cause devastating damage, and they can happen anywhere. As a result, the federal government created a program designed to help with the economic challenges of dealing with floods. There are two types of coverage available through this program: building and contents coverage. 

The National Flood Insurance Program (NFIP) was developed to protect property owners from the monetary consequences of flood damage. The funds are distributed by the Federal Emergency Management Agency (FEMA). 

Special Considerations for Unique Circumstances 

Some unique circumstances may warrant special attention. For example, what if your home is also your business? Or what if you rent? What happens in these circumstances? Keep reading to find out the answers. 

Home Businesses and Natural Disaster Coverage 

Many people do business out of their homes. Consequently, they may have expensive equipment that standard policies won’t cover. It makes sense to consider a separate home business policy. Talk to your agent about your options to ensure you are covered in case of an emergency. 

Renters’ Role in Insurance During Disasters 

Renters need to purchase renter’s insurance to be protected. This will cover their personal belongings in case of a disaster. The owner’s coverage will only take care of structural damage. However, items such as furniture and personal effects need a separate policy. 

Make Sure Your Home Is Covered When Mother Nature Comes Knocking 

Be prepared if Mother Nature comes knocking at your door. Take time to review your policy with a knowledgeable agent at Acceptance so you can better understand home insurance and natural disasters. You can purchase thorough coverage that meets all your special circumstances for protection. Our agents can discuss any concerns you have to ensure that you get the best coverage at the most affordable price. Contact us by phone at (877) 405-7102. Additionally, you can visit one of our many locations or get a quote online.