Do You Really Need Disaster Insurance

Do You Really Need Disaster Insurance

Do you​ Really Need Disaster Insurance?
The expenses involved with owning a​ home can be overwhelming at​ times - routine maintenance,​ repairs,​ seasonal preparations,​ improvements .​
Not to​ mention taxes,​ fees,​ and all those monthly bills .​
Some homeowners,​ in​ trying to​ reduce their expenses,​ wonder if​ they really need disaster insurance.
Disaster insurance is​ typically defined as​ additional homeowner's insurance to​ cover events like hurricanes,​ tornadoes,​ earthquakes,​ and floods .​
Home insurance policies typically cover hurricanes and tornadoes (review your policy to​ be certain in​ covers damage from such events) .​
But often damage from floods and earthquakes isn't covered .​
This extra insurance,​ if​ desired,​ must be purchased in​ addition to​ your standard homeowner policy,​ and it​ can be expensive,​ depending on​ where you​ live.
Because disaster insurance can be expensive,​ it's a​ type of​ coverage some homeowners opt not to​ buy .​
But in​ some cases they are required to​ buy .​
For example,​ mortgaged homes in​ the​ US that are located in​ designated flood hazard areas are required to​ buy flood insurance through the​ US National Flood Insurance Program .​
Of course,​ once those mortgages are paid,​ there is​ no longer a​ requirement to​ buy such insurance .​
But homeowners in​ those areas should carefully consider whether they really want to​ take the​ risk that their home and everything in​ it​ could be swept away,​ leaving them with nothing but an​ empty lot .​
Homeowners that aren't in​ designated flood hazard areas should still know that floods can cause plumbing problems,​ like sewer and septic backups .​
These often aren't covered in​ a​ standard homeowner's policy,​ and they may want to​ consider an​ endorsement for coverage.
In the​ US,​ many tend to​ think that only the​ area along the​ west coast is​ subject to​ earthquakes .​
This isn't true however,​ and 39 US states have some potential for earthquakes .​
Coverage for seismic events can be very expensive in​ California and other western states,​ but homeowners in​ other states should evaluate the​ cost vs .​
the earthquake risk for the​ area where they live.

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