Homeowner’s Insurance: Preparing for the Worst

The very reason one buy’s insurance for their home is so they can be financially prepared for the unexpected – from small repair and maintenance problems to major storm damage. So as you pick out the best policy for your home, here are some various natural perils to consider. Weather is unpredictable, but you can prepare for it financially.

Ask yourself: is my home at a low, moderate, or high risk for the following? This way, you can find a homeowner’s insurance plan that can prepare you for the most likely “worst case scenarios” in your area.

So, what are these natural disasters that threaten to cause property damage and/or loss?

Earthquake/Flood

Earthquake and flood insurance are probably the most difficult to find in the volunteer market. But for folks in some areas, they may be the most necessary type of insurance coverage they can get! The damage caused from an earthquake or flood can be devastating. And unfortunately, one is not even guaranteed earthquake insurance in the government regulated shared market! (Though California has special earthquake insurance available to its citizens.) An earthquake doesn’t merely cause damage from ground movement – it can lead to as many things as power outages and fires.

Floods are the biggest natural disaster threat there is and they cause tremendous amounts of damage very year. This is why if you live in area that is a high risk for flood, you must get flood insurance – you may have almost a 30% chance of your house being flooded after all!

Hail/Freeze

Every season comes with its own challenges, and as the weather cools down, there may be hailstorms or snowstorms. If you live in an area that has frequent and intense thunderstorms, then you may also live an area at risk for hailstorms. Like floods, hail causes a lot of damage annually and should definitely be on your radar as you hunt for an insurance plan. An even bigger concern is winter freezes, where the snowfall can be overwhelming for not just a single home, but an entire city or state. Lots of snowfall can cause problems like flooding and power outages and roof damage.

Hurricane/Tornado

Two other kinds of natural disasters that only certain areas are at a high risk for are hurricanes and tornados. After Hurricane Katrina, homeowners became aware of the real, deadly threat of tropical storms. If you live in a warm, coastal region, hurricane coverage is a must.

Tornados are another scary threat to homes and their residents. If you live in Texas up to Minnesota, that means you live in “Tornado Alley” and you are at a much higher risk than the rest of the US population of enduring a tornado. So make sure your insurance policy covers tornados!

Lightning/Power Outage

Lightning and power outage tend to go do hand in hand, but they are actually separate perils that can be insured separately. Lightning is especially dangerous because it can lead to electrical fires and the like. While lightning and other weather events can cause power outages, any kind of interruption in the electricity of your home, whatever the cause (a falling tree, etc), can have bad consequences.

Wildfire

Wildfires are especially hard for a homeowner to prepare for, as they infect dozens of homes (or more), not just one. And no state is immune to them either.

Now that you have a grasp on the different natural disasters that threaten to cause property damage and loss, you can begin to investigate how at risk your home is to each individual peril and shop more effectively for the right insurance plan.