Homeowners insurance is a crucial safety net, but it's important to understand which natural disasters are typically covered. While specific policies vary, here's a general overview:
Commonly Covered Natural Disasters:
Windstorms and Hail: Most standard policies cover damage from windstorms and hail, including damage to your roof, siding, and windows. This includes damage from hurricanes and tornadoes, although specific deductibles might apply, especially in high-risk areas.
Lightning Strikes: Damage caused by lightning strikes, including fires and electrical damage, is typically covered.
Fires: Wildfires, as well as fires caused by other natural events, are generally covered by homeowners insurance.
Weight of Ice, Snow, or Sleet: Damage caused by the weight of accumulated snow, ice, or sleet, such as roof collapse or damage to gutters, is often included.
Volcanic Eruption: Damage resulting from volcanic eruptions, including ashfall and lava flow, is usually covered.
Natural Disasters That Are NOT Typically Covered:
Floods: Standard homeowners insurance policies do not cover flood damage. You'll need a separate flood insurance policy through the National Flood Insurance Program (NFIP) or a private insurer.
Earthquakes: Similar to floods, earthquake damage is usually not covered by standard homeowners insurance. You'll need a separate earthquake insurance policy.
Landslides and Mudslides: Damage caused by landslides and mudslides is often excluded from standard policies. In some cases, you may need a specialized policy.
Sinkholes: Sinkhole coverage varies by location and policy. It's essential to check with your insurer to understand your coverage in areas prone to sinkholes.
Important Considerations:
Policy Variations: Homeowners insurance policies can vary significantly. Always review your policy carefully to understand the specific coverage and exclusions.
Deductibles: Be aware of your deductibles, especially for events like hurricanes or hail storms, as they can be higher than your standard deductible.
Location Matters: Your location plays a significant role in determining what types of natural disasters your home is vulnerable to and what coverage you need.
Additional Coverage: If you live in an area prone to specific natural disasters, consider purchasing additional coverage to protect your home.
Understanding your homeowners insurance coverage is essential for protecting your investment. Don't hesitate to contact your insurance provider with any questions or concerns.
About the Author
Unison
We're the pioneers of equity sharing, offering innovative ways for you to gain access to the equity in your home. For more than a decade, we have helped over 12,000 homeowners to pursue their financial goals, from home renovations to debt consolidation, retirement savings, and more.
