While having a home insurance is good sense, it might be leaving you uncovered for a variety of different situations that can drastically affect the safety of your homes. Just within a span of year, USA faced a hopping 15 natural disasters that affected lives and properties all over the regions that were severely hit. Over a billion dollars’ worth of damages were calculated over this span but it is no wonder that all homes were not covered under the homeowner’s insurance details when damaged by an act of god.
Homeowner’s insurances have minute differences in the coverage when the damages pertain to acts of God, catastrophe or regular home damages due to accidents or thefts. You need to know about these differences and also explore different coverage options that provide a better protection for your property. This is especially necessary if your property is located in a disaster prone area.
Understanding an Act of God
Natural disasters or catastrophes that are completely out of your control are usually termed under an Act of God. This includes earthquakes, windstorms, tornadoes, hurricanes or even wildfires.
Here is a breakdown of some of the natural disasters and how much are they covered under various insurances.
Hurricanes – Hurricanes affect almost every coastal state in USA and most of these 19 states do have an added insurance coverage for windstorms within homeowner’s insurance policies. The coverage deductible however differs for each of the insurance policies with companies putting up percentage of property as the deductible under these circumstances, instead of a typical set of dollar deductible.
Wildfires – Within last year, there have been over 55,000 wildfire cases reported within various regions of USA. Wildfires can originate from unattended burned debris or campfires. It can also be induced with negligent arson. Since smoke and fire are both covered under regular homeowner’s insurance policies, you do not need to invest in additional catastrophe or natural disasters related policies for such scenarios. You will however, need to assess certain factors, such as the proximity of your property to fire control resources, since this will have a huge impact on the premium amount that is to be set for your insurance. Typical car insurances also cover fire and smoke damages to cars and this includes damages sustained by wildfires.
Flood- Regardless of the fact that flooding is a result of many associated natural disasters, flood damages are no covered under regular insurances. To protect your property you need to buy additional coverage through flood insurance policies. NFIP (National Flood Insurance Program) and many private insurers offer a variety of flood coverage under their exclusive policies.