Every few years, it seems like a major natural disaster strikes. For many, it’s a tragedy as they might lose loved ones, their car, their home, etc. For everyone else, it’s a reminder of what COULD happen. There’s no doubt that we can’t be entirely protected but insurance does exist to get some level of protection. It’s important to understand that in most cases, basic insurance coverage do not cover “acts of god”, or natural disasters. Getting insurance to protect you from massive flooding, hurricanes and tornadoes does exist but it’s something that you have to shop for separately.
According to United Policyholders (UP), a nonprofit, over 2/3 of the population has no protection from such events. What type of insurance can you look for? It is true that the federal government does help out in cases of major disasters but I personally think it’s difficult to really count on it. There’s no clear rule saying that it will always do it and it might depend on external conditions (having elections in the near future, which party is in power, etc). I just think it’s important to have your own coverage here.
Flooding: The cost will depend mostly on what type of house you have and where it’s located but in most cases, you can get coverage for a few hundred dollars per year.
Wind: Depending on where you live, this type of insurance might (or not) be included in your basic home coverage.
Earthquake : Again, if you live in a place like California, chances are that you will have to pay very expensive premiums to get such insurance. Is it worth it? I guess each of us would have a different answer. I personally live in a place where we usually do not worry about such events but I guess the recent “Sandy storm” shows us that natural disasters are striking more and in stronger ways as the years go by.
Talk To Your Insurance Agent
It’s important to know what you already do have coverage for and what other insurance policies could make sense depending on the risks that you face and what you feel that you need to protect yourself from as well as the cost involved.