Human-caused disasters and natural disasters occur in every state. California has earthquakes and wildfires, Colorado has flooding and wildfires, the Northeast has winter storms and high winds, Florida has flooding and hurricanes, and the Midwest has flooding and tornados.
Insurance And Disasters
It is safe to say that most business and homeowner’s insurance policies do not cover the risks associated with disasters. The only exception would be damage caused by wildfires. Let’s look at how insurance might apply to other disasters.
- Floods-- Only 13% of U.S. homeowners had flood-insurance policies last year according to the Insurance Information Institute, a trade group. Flood insurance must be purchased through the National Flood Insurance Program. We can help you if you need the coverage.
- Earthquake-- While earthquakes occur mainly in certain areas, there are registered earthquakes in every state, every year. Earthquake insurance also must be added or purchased under a separate policy.
- Tornadoes-- Damage from tornadoes typically is covered, since it usually is considered wind damage.
- Mudslides-- A standard home insurance policy does not protect your home against damage caused by a mudslide. Mudslides are usually defined as ground movement. Heavy rains that cause a mudflow would typically be covered.
- Heavy Snow and Winter Storms-- Winter storms and snow damage is covered under a typical homeowner’s policy. If flooding occurs, then the flood damage would be covered.
- Hail-- Most homeowner’s insurance policies provide coverage for losses resulting from hail.
- Wildfires-- It can be safe to say that all homeowner’s insurance covers loss resulting from a fire. Wildfires are considered a fire and would be covered.