Flood & Earthquake Insurance
Do You Have Coverage in Case a Disaster Hits?
Sitting in your home right now do you feel confident with your level of insurance coverage?
Homeowners insurance covers the most common dangers you will probably be exposed to. Fire, lightning, waterline breakage and internal explosion (like a furnace exploding) are examples of threats covered on most homeowners insurance policies. However, there are other dangers that you might consider worth adding to your homeowners policy.
Here are some common dangers that usually are not covered under a traditional homeowner’s insurance policy that you may want to consider:
Flood: For insurance purposes a flood is considered temporary extra water on land that is usually dry. Flood insurance is a separate policy issued by the National Flood Insurance Program or NFIP. Flood insurance may be required if the property is located in a flood plain your mortgage lender requires coverage in, or you can apply for coverage. Note that there may be a 30 waiting period for coverage to be effective.
Earthquakes: Most people don’t realize just how many fault lines exist across the U.S. You can add earthquake insurance with a separate policy or as an endorsement to a current homeowner policy. Costs vary by location and type of dwelling construction.
Mudslides: Coverage for mudslides usually is not covered under your homeowner’s policy. It probably isn’t even something you would think about. But, depending on where you live, mudslides could be an annual threat. For that reason, it is important to understand your coverage and be careful not to get "mudflow" and "mudslide" mixed up. Flood insurance will cover mudflow but not a mudslide. Sometimes it's complicated to determine how much of your home was hit by a mudflow and/or a mudslide so having protection for both (getting flood insurance and mudslide insurance) may be the best way to cover any gaps.
Having a policy for a catastrophic event may not be uppermost on your mind. But, it is definitely worth discussing with your insurance agent who can help you make a decision on what makes sense for your home.