Do You Really Need Disaster Insurance?
The expenses that come with owning a home can be overwhelming at times, and when you consider that taxes, fees, and other monthly bills associated with owning a home, the cost can be quite large. You never know when disaster might strike and protecting those assets is something you don’t always immediately think of but having disaster insurance in place can help protect you and your home should disaster strike.
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.
Disaster insurance can be expensive and because of this, many homeowners opt not to purchase it, but in some cases, it is required. For instance, some homes that are located in designated flood areas are required to have disaster insurance because, their property is located in a high-risk area.
Earthquakes are another disaster to consider. Oftentimes, people associate earthquakes only with the west coast, but the reality, is that 39 states have the potential for earthquakes and having disaster insurance in place can help protect you and your home should a large earthquake occur and cause damage.
Disaster insurance isn’t always required, but if your home is located in a high-risk area the disaster insurance may be a thing to consider. It wont only protect your home should disaster arise, but it will also give you that added piece of mind.