Natural Disaster Insurance

Natural disasters may be defined as involving Mother Nature and her fury! Natural disasters particularly often included wind damage and flood damage. Of course, hurricanes and cyclones often cause additional damages due to power outages.

Flood Insurance is available through both private and government programs. The dollar premiums for such insurance coverage however are becoming more and more expensive as storms become increasingly prevalent.

Generally speaking homeowner insurance policies do not cover flood damage caused by a natural disaster. Flooding caused by frozen pipes may or may not be covered in a homeowner policy, but reimbursement for such damages is normally accompanied by a homeowner cost-sharing mechanism, known as the deductible!

Wind damage is normally covered by homeowner insurance policies, but wind damage caused by a hurricane or cyclone may involve deductibles based on a percent of the home's actual insured value.

Several points to remember about natural disaster insurance coverage and claims you submit for reimbursement for that damage:

1. Review your coverage with your insurance agent so you fully understand the coverage you have for flood, hail, wind, etc.
2. Review the type of deductible you have for any "natural disaster" insurance coverage.
3. Record your insurance policy number and your insurance agent information in several places other than your home.
4. Maintain an accurate record of the contents of your home detailing the type of possession, the cost of the possession, and when and where it was purchased. This record could be both a video and fact record. An online application that might help guide you in this effort is available at the Insurance Information Institute's website http://www.iii.org/software/. Search for the home inventory application.
5. Maintain an accurate, written record of your conversations with the claims adjuster who reviews the natural disaster to your home and personal property.

It pays to understand your insurance coverage and how to proceed when a disaster occurs.