Introduction -
Unfortunately, disasters of the natural kind have always existed and
although we have systems in place to detect the imminent onset of
some, homeowners still have to deal with the consequences. The United
States of America has to endure a broad range of "weather"
conditions, some conditions can be insured against. Our weather system
seems to becoming more severe and hence the need for home owner
insurance becomes more important. Your location will of course determine your chances of suffering a
" weather or disaster related loss" and some perils will be
covered by your policy, others you will have to pay for. Where you
live will determine your rate.
Hurricanes -
this type of natural disaster usually occurs in coastal regions,
eastern and Southern United States of America are prime examples. Florida
is a Hurricane Hotspot.
Under a Standard Home insurance owner policy, Hurricanes are usually covered
but you must check your policy wording. Look for the section saying
" Windstorm".
Please remember that the bulk of Hurricane damage is not caused by
wind but by water, be it rain or tidal surge. To obtain this
protection, you will need to purchase Flood Insurance which is
an optional extra.
Tornadoes -
one things for sure, Tornados occur almost every year mainly
in the Midwest's "Tornado Alley" an area that stretches from
Texas northward to the Dakotas. Tornados have been known to occur in
other areas as well.
A standard home owner policy will cover any losses incurred by
tornadoes, again look for the peril listed as " Windstorm".
Please remember though that your rate will be calculated on your
potential exposure to a claim.
Volcanoes -
thankfully volcanoes do not cause much alarm
amongst American Homeowners, they are not common, only Hawaii and
Washington have any real exposure. Damage caused by Volcanoes is
usually covered by your Standard Home Owner Insurance policy.
Firestorms -
usually, the hot summer months bring dry weather and
hot winds. A small spark or carelessness can turn a parched land with
dry grass & bushes in to a wall of flame. These firestorms
will travel rapidly over dry land and will require huge
resources to control. Your standard home owner insurance policy should protect against
this risk and all other types of Fire, always check your policy
wording though.
Floods -
every year, Floods cause major damage in the United States.
As it is such a major problem, the peril of Flood is never included in
the standard home owner insurance policy wording. You will have to
purchase it as an optional extra and again your rate will be governed
by where you live. The National Flood Insurance Program (NFIP) is a federally-funded
program that offers insurance to those at risk of a Flood. It is based
on a community participation basis: if your community isn't a part of
it, you may not be able to acquire flood insurance. However, most
communities participate if they are at risk. Flood insurance covers:-
- Direct physical damage to the main house and its foundations
- Erosion damage
It does not cover:
- Structures extended over water (i.e. boathouses)
- Structures other than buildings ( pools, etc.)
Flood cover is limited and you should expect there to be a ceiling
on cover.
Earthquakes -
earthquakes occur throughout the United States with
California being the most memorable. Earthquake Insurance is not included under the standard home owner
insurance policy and you will have to purchase it as an optional
extra. There is usually a high deductible but as a lot a claims are for
a catastrophe, this is usually seen as being quite reasonable (
Deductible of 10% is common). The cost of Earthquake Insurance depends on where you live, there
are 5 rate areas and the construction of your house may also influence
the rate. Also remember that this extra will not include Flood Damage caused
by Earthquake, you will have to purchase that cover as an extra as
well.
