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Disaster Insurance Basics

Natural disasters can be devastating to your home or your apartment. They can endanger your family, threaten your livelihood or do significant damage to your living quarters. There are a variety of natural disasters including earthquakes, hurricanes, floods, or other natural phenomena that do damage to people and to property.

In order to mitigate the risks of natural disasters and the resulting damage to homes, insurance can be purchased. Some types of insurance cover natural disasters and the damage caused by them. These forms of insurance have very detailed and occasionally confusing specifications regarding which types of natural disasters or phenomena are covered by the policies. Its important to know which types of disasters your insurance policy covers and what the parameters are for the types of phenomena against which you are protected.

There are two major pieces of the proverbial puzzle that is disaster insurance. The first piece of the puzzle is understanding insurance generally. Knowing about insurance is crucial because without an understanding of how insurance works, knowing about disaster insurance is meaningless because many of the terms and basic understandings will mean nothing to you. The second piece of the puzzle is knowing which types of natural disasters or phenomena are covered by your insurance policy. This is crucial because the types of natural phenomena you're likely encounter in different areas of the country will dictate which types insurance you may need and what you need to consider when buying. Now that its clear what we are considering , lets dive in!

How Insurance Works

Insurance protects you from the unknown. When buying insurance you are paying small sums over long periods of time to help allay the costs of the damage done when the worst happens. The worst can refer to any number of events from car accidents, home fires, to the death of a breadwinner. Almost anything that can happen and negatively affect an individual, a business, a property or other protected entity or a family can be covered by insurance. Insurance has different degrees of protection, amounts of money used in the protection, parameters for when someone is eligible, and other factors to consider. The rates of payment and many other important pieces of insurance vary considerably depending on the company, the policy and the individual but the basic concepts remain more or less the same.

Which Disasters are Covered

Basic homeowner's insurance policies cover natural disasters and other phenomena. The coverage frequently refers to these events as perils and includes, but is not limited to, fire, lightning, and snow damage. The issue is that many natural disasters are not covered by the average basic homeowner's insurance. For example, if you live in California or other places where earthquakes are consistently a threat to homes and apartments, its worth knowing that many basic homeowners' insurance policies do not cover earthquakes or other earth movements (mudslides, landslides, sink holes, etc.) Those living in areas on the coasts of large bodies of water need to know that many average policies don't cover floods, mudflow or hurricanes. The coverage is going to vary from policy to policy but many standard homeowner's insurance policies look very similar, so be sure to examine your policy and update based on the risks that are posed by your circumstances and surroundings.

Disasters happen at inopportune times. They menace our properties, safety and livelihoods. What's written here are some ideas and places to start when considering disaster insurance. As always, do your own research when considering insurance to protect your home or apartment from the unthinkable. Good luck and be safe!

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