Homeowners insurance usually covers many disasters like wildfires and tornadoes, but a standard policy won’t cover damage from an earthquake or flood. There are separate policies that cover this damage, so it’s good to know what you’ll need extra coverage for.
What Disasters Are Covered by Homeowners Insurance?
A standard home insurance covers all types of disasters except those that are specifically excluded. The best home insurance policy will cover damage from:
- House fires such as kitchen fires
- Wildfires
- Ice, snow and deep freezes
- Lightning
- Volcanic eruption
- Wind and hail
- Hurricane wind damage (except in certain coastal areas)
- Falling objects such as tree branches
It’s a good idea to review what homeowners insurance covers so you can be sure you’re not underinsured and that there are no surprises about what’s eligible for a claim.
What Disasters Are Not Covered by Homeowners Insurance?
Flood damage and earthquakes aren’t covered in a standard homeowners insurance policy. You would instead need to buy separate flood insurance or earthquake insurance on top of a home insurance policy.
Earthquake Damage
Private insurance companies offer earthquake insurance in most states. Californians can buy earthquake insurance from an insurer that’s a member of the California Earthquake Authority.
The average annual cost of earthquake insurance is about $850 a year, according to AAA. The exact cost depends on factors like:
- Location
- Building materials
- Home’s age
- Home’s value
- Deductible
A standard home insurance policy doesn’t cover earthquake damage but it may cover fire damage caused by an earthquake.
Flood Damage
The National Flood Insurance Program (NFIP) and private insurance companies offer flood coverage. NFIP policies cover as much as $250,000 for dwelling coverage and $100,000 for personal contents protection. If you need more coverage, you can buy a private flood insurance policy.
The average cost of flood insurance from the National Flood Insurance Program is $1,153 a year, according to our analysis of flood insurance rates. That’s an average of $96 a month.
Flood insurance costs vary depending on:
- Location
- A property’s flood risk
- Coverage amount
- Policy type
- Provider
- Deductible
- Building’s characteristics
Hurricane Wind Damage
Home insurance companies in coastal areas sometimes exclude coverage for wind damage. Homeowners in those higher-risk areas would need to buy a policy endorsement or a separate policy focused on windstorm and hail damage.
Two other possible options for those with home insurance that excludes wind damage are a state’s FAIR (Fair Access to Insurance Requirements Plan) or a Beach plan. A FAIR plan is a last resort insurer that offers coverage to homeowners with high risks. A Beach plan is similar to a FAIR plan and sold only in specific coastal communities along the Atlantic and Gulf coasts.
What’s an Insurance Deductible?
An insurance deductible is the amount subtracted from a claim payment when you make certain types of insurance claims, such as a claim for damage to your house.
A homeowners insurance deductible is often a dollar amount, such as $500 or $1,000. If you have a $1,000 deductible and your home suffers $10,000 worth of damage, your home insurance company would pay you $9,000.
A deductible can also be a percentage of your home’s insured value. This can be the case for a hurricane deductible, which is often between 1% and 5% but may reach as high as 10% in high-risk areas, such as along the Florida coast. If you have a 2% hurricane deductible on a home with $300,000 in dwelling coverage, the deductible would be a whopping $6,000 if you make a hurricane-related claim.
Only 19 states and Washington, D.C., allow insurance companies to implement a hurricane deductible:
- Alabama
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Louisiana
- Maine
- Maryland
- Massachusetts
- Mississippi
- New Jersey
- New York
- North Carolina
- Pennsylvania
- Rhode Island
- South Carolina
- Texas
- Virginia
Earthquake insurance can also have a percentage deductible. The deductible for earthquake insurance can range from 2% to 20% of your dwelling coverage amount. Insurance companies in states prone to earthquakes can set a minimum deductible—for example, 10%, according to the Insurance Information Institute.
How To Assess Your Homeowners Insurance Before a Natural Disaster
One way to properly cover your home against a natural disaster is to ensure you have enough coverage to replace your house if it’s destroyed.
A homeowners policy’s dwelling coverage caps claim payments but you may be able to buy additional coverage beyond that limit with either extended or guaranteed replacement cost coverage.
Type of coverage and what it pays
Extended replacement cost coverage: Pays up to a certain percentage above your dwelling coverage amount, such as 25% more. That means a policy with $400,000 in dwelling coverage and 25% extended replacement cost coverage would provide $500,000 to rebuild a house, if needed.
Guaranteed replacement cost coverage: Pays for the full cost of repairs needed to rebuild the house, regardless of the price tag.
Availability will depend on your insurance company. Either of these two coverage features can help assure you have enough dwelling coverage after a disaster. For instance, labor and material costs often spike in areas hit by a disaster, and suddenly the dwelling coverage amount listed in your policy can be inadequate. In these cases extended or guaranteed replacement cost coverage will kick in to provide extra funds.
If you decide to add extended replacement or guaranteed replacement cost coverage to your home insurance, you will pay more. However, that added coverage might be worth it, especially in times of high inflation and skyrocketing building costs.
A home insurance policy may require that you rebuild at the same location. A policy may alternatively allow you to collect a cash settlement and build a house elsewhere in a safer location that isn’t as prone to wildfires or hurricanes. You will find that information in a policy’s loss settlement clause.
What to do if You Experience Damage From a Natural Disaster
Review your homeowners insurance policy
Read your home insurance policy, which states your coverage types and limits. If it’s not readily available, your home insurance agent or company can provide a copy. Reviewing the policy details can help you understand what’s covered and your maximum payout.
Contact your homeowners insurance agent or company
Contact your insurance agent or company immediately to report damage. If the extent of damage means you must live elsewhere temporarily, talk to your insurance agent about your policy’s additional living expenses coverage. This coverage provides money for extra expenses like hotel rooms, restaurant meals and storage. Keep all of your receipts for these expenses to make a claim for additional living expenses.
Assess and document the damage for your claim
Photograph your damaged property and personal items. Make a note of the type of damage, estimated value and approximate purchase date, if you can remember. This information will help when you file an insurance claim. Having a home inventory can help expedite a claim.
Questions to ask your home insurance company after a disaster
- Can I start cleaning up?
- Can I (or should I) start any repairs?
- Do I need to submit estimates for repairs?
- What is the deadline to file my claim(s)?
- What documents do I need to complete my claim?
- What is my deductible?
Start a home insurance claim journal
Paperwork for a home insurance claim can pile up quickly. It’s smart to keep records of receipts, photos, videos and all communication with your insurance company. Document the dates, names and conversation details involved in the claim process in your log. If you need to recall specific claim details, you’ll have the information readily available.
Register for disaster assistance
If your home is damaged in a natural disaster, you can register at DisasterAssistance.gov. Provide your home’s address, where you’re living currently, your Social Security number, current phone number, insurance information, annual income, description of damage and losses, and the routing and account number of your checking or savings account. This info allows FEMA to directly send you disaster funds. You can also call 1-800-621-FEMA (3362)/1-800-462-7585 (TTY) or visit a Disaster Recovery Center (DRC).
What Type of Coverage Is Often Overlooked?
Two types of potential losses that might not be covered by homeowners insurance are food spoilage and debris removal.
If you have coverage for food spoilage, your policy will have a specified limit, such as $500. But you’re still responsible for your deductible. If you have $400 worth of spoiled food and a $500 deductible, you wouldn’t get an insurance check. But if you have house damage and food spoilage, your claim is likely above your deductible amount.
Home insurance for fallen trees may not help with debris cleanup following a storm, depending on the policy and the cause of the damage. For example, say a tree falls in your yard without hitting your house or other structures. Your home insurance policy most likely would not cover the cost of removal, unless you purchased extra coverage for debris removal.
But if a tree falls because of a problem covered by your policy (like a lightning strike) and blocks your driveway, your policy might cover debris removal up to a specified limit. For example, a policy might pay up to $1,000 for debris removal costs.
Home Insurance for Natural Disasters FAQs
Will homeowners insurance cover relocation?
Homeowners insurance typically covers additional living expenses, which pays for temporary lodging, restaurant meals, storage, laundry services, pet boarding and similar expenses if you can’t live at home due to damage that’s covered by your policy.
Keep your receipts so that you can submit them to the insurance company for reimbursement.
Why doesn’t homeowners coverage include flood insurance?
Homeowners insurance typically excludes flood insurance because of the high costs associated with that damage. If you want flood coverage, buy flood insurance through the National Flood Insurance Program or a private flood insurance company.
How does a deductible impact a claim?
Choosing a higher deductible will generally lower your home insurance bill but you will get less money if you file a damage or theft claim.
An insurance deductible is what is deducted from your claims payout. For instance, if you have a $1,000 deductible and have a $20,000 insurance claim, the insurance company will cut you a check for $19,000. Earthquake and hurricane deductibles are typically a percentage of your home’s insured value.
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