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Are Disasters Covered under Homeowner's Insurance?
These disasters not covered by homeowner’s insurance:
Floods – You can purchase this coverage directly from your homeowner’s insurance agent. However, the policy is provided by the Federal Flood Insurance Program (800-427-4661).
You can get replacement cost coverage for the structure of your home, but only actual cash value coverage is available for your possessions. There may also be limits on coverage for furniture and other possessions stored in your basement.
Flood insurance is available for renters as well as homeowners. You will need flood insurance if you live in a designated flood zone, but you should also consider buying it if your house could be flooded by melting snow, an overflowing creek, or water running down a steep hill. Don’t wait until the evening news announces a flood season warning to buy a policy. There is a 30-day waiting period before coverage takes effect.
Earthquakes – This coverage can be a separate policy or an endorsement to your homeowner’s or renter’s policy. It is available from most insurance companies. In California, it is also available from the California Earthquake Authority. In earthquake prone states like California, the policy comes with a high deductible.
Maintenance Damage – It is your responsibility to take reasonable precautions to protect your home from damage. Your insurance policy will not cover damage due to lack of maintenance, mold, termite infestation, and infestation from other pests.
This article was submitted by the Insurance Information Institute, an organization that provides facts and assistance free of charge to the media, individuals and organizations. Submission of this article does not imply an endorsement or recommendation of the Financial Resource Center site.