| Natural and unnatural disasters affect everyone. | | | | and near the Atlantic Ocean, Gulf of Mexico, |
| Some areas of the United States are so prone to | | | | Indian Ocean, Caribbean Sea and Pacific Ocean. In |
| natural disturbances that many private insurance | | | | the United States areas surrounding the Gulf of |
| companies will not offer coverage. For example, | | | | Mexico and along the eastern coastlines of Florida |
| most homeowners insurance will not cover | | | | to Maine are particularly prone to this type of |
| damage caused by floods or earthquakes, and | | | | severe weather. |
| few will cover forest fires if your property is in | | | | To determine the level of risk in your area: View |
| an undeveloped area. | | | | hurricane maps published by the National Climatic |
| When evaluating what kind of insurance coverage | | | | Data Center at |
| you need, consider what your current policy | | | | Insurance: Many standard insurance policies will |
| covers, any inexpensive additions (or | | | | cover damages covered by wind but not by |
| endorsements) to your active policy and your | | | | flooding. Flood insurance must be purchased |
| location related to the risk of natural disaster. | | | | through the National Flood Insurance Program. |
| There are many types of disasters to consider, | | | | UNNATURAL DISASTERS |
| including natural disasters like floods, earthquakes, | | | | War |
| forest fires, tornadoes and hurricanes. Unnatural | | | | Damage to property from war activity, due to |
| disasters include war, nuclear accidents, civil | | | | modern technology, could potentially happen |
| disobedience and terrorism. | | | | anywhere. Most insurance policies will not cover |
| NATURAL DISASTERS | | | | losses caused by a war. |
| Floods | | | | Nuclear Accidents |
| Who is at risk? Everyone. Any area can | | | | If a nearby power plant irradiates your property, |
| experience an unusually wet season and the | | | | insurance will generally not cover damages. |
| wastewater management systems of most cities | | | | However, it may help to express liability concerns |
| do not have the means to control a rapid increase | | | | to the owners of the plant. Before purchasing a |
| of water in paved areas. Generally, if your | | | | property, you may want to visit the US Nuclear |
| property lies near a body of water or in an area | | | | Regulatory Commission website at to discover if |
| prone to hurricanes or flash floods the National | | | | an active plant is located in the area. |
| Flood Insurance Program (NFIP) considers you to | | | | Civil Disobedience |
| be at a high risk. | | | | Civil disobedience usually refers to a riot or other |
| To determine the level of risk in your area: Visit | | | | civil commotion. Standard insurance will generally |
| sponsored by the NFIP, to see floodplain maps | | | | cover damages resulting from a riot, unless you |
| and search by zip code the flood risk of a specific | | | | were actively involved. If your property is broken |
| area. | | | | into and items are stolen or vandalized, most |
| Insurance: Traditional homeowners insurance does | | | | insurance policies will cover the cost of repairs and |
| not cover flooding. Many lenders require flood | | | | replace stolen items. However, in order to receive |
| insurance if the property is located in a high-risk | | | | the full value of lost items you may have to |
| area. Private agencies do not provide flood | | | | purchase "replacement cost coverage." |
| insurance; flood insurance is available through the | | | | Terrorism |
| NFIP, who is under FEMA and the Department of | | | | On November 26, 2002, President Bush signed |
| Homeland Security. Information about this | | | | the Terrorism Risk Insurance Act, which stated |
| insurance program is available at the NFIP website | | | | that private insurers and the federal government |
| or through an insurance quote service. Flood | | | | share the risk of losses attributed to terrorism. |
| insurance offered by the NFIP usually also covers | | | | The act also rescinded state exclusions for |
| flooding caused by hurricanes, rivers and tidal | | | | terrorism. This act was set for a three-year |
| waves if two acres or two adjacent properties | | | | period; check in your state to find out how your |
| are affected. Water damage from broken pipes, | | | | state currently enforces coverage for acts of |
| backed-up sewers and from fire hoses is usually | | | | terrorism. Additionally, evaluate your particular |
| covered by standard insurance. | | | | insurance policy to see what benefits you may |
| Earthquakes | | | | receive if an act of terrorism affects your |
| Who is at risk? In the United States, the most | | | | property. |
| active areas are along the Pacific Ocean including | | | | Additional Considerations: |
| Alaska, Hawaii, California, Oregon and Washington. | | | | - Homeowners may want to consider, regardless |
| Inland areas of activity include Nevada, Utah, | | | | of location, Additional Living Expenses (ALE), which |
| Idaho, Wyoming, and a small area between the | | | | is a benefit that will reimburse up to 10-20% of |
| three connecting corners of Arkansas, Tennessee | | | | the structural coverage of your home to help |
| and Missouri. | | | | with temporary living expenses. |
| To determine the level of risk in your area: The | | | | - Business owners may want to consider |
| United States Geological Society Earthquakes | | | | purchasing 'contingent business interruption' or |
| Hazards Program hosts maps at [ that are | | | | 'contingent business income' coverage that can |
| updated by the hour for the entire planet. | | | | help cover profit loss or extra expenses that |
| Residents of California can go to [ to view an | | | | occur as a direct result of interruption of supply |
| interactive shaking and liquefaction map. | | | | due to events outside the businesses control. This |
| Insurance: Earthquake endorsements can be | | | | type of coverage could be beneficial if your main |
| added to most insurance policies purchased | | | | supplier or customer is located in an affected |
| through a private agency. In California, residents | | | | area. |
| can purchase earthquake insurance through the | | | | - Landslides often are not caused by earthquakes |
| California Earthquake Authority. The probability of | | | | or flooding. This unique kind of earth movement |
| an earthquake, your location, soil type and building | | | | falls into a commonly undefined area of coverage; |
| structure determine premiums. Deductibles on | | | | consult your policy to see if your insurance |
| earthquake insurance are typically very high, often | | | | covers this type of occurrence. |
| up to 10 to 15 percent of the building's structural | | | | - Standard insurance may cover some natural |
| limit. Damage caused by broken gas lines or water | | | | disasters, such as damage from windstorms, hail, |
| pipes as a result of an earthquake typically may | | | | lightning and volcanic eruptions. |
| be covered by standard insurance. Earthquake | | | | - Even if you purchase complete coverage, relief |
| damage to vehicles is covered by comprehensive | | | | does not come instantly. With this in mind, it is a |
| insurance. Liquefaction can cause water damage | | | | good idea to keep on hand food, water, cash, a |
| by mud and standing water resulting from an | | | | battery operated radio, first-aid supplies and |
| earthquake. Consult your policy to determine | | | | protection from the elements to last at least |
| whether your earthquake endorsement or other | | | | three to four days. |
| additions cover this type of phenomenon. | | | | - Document your belongings well. Keep an |
| Forest Fires | | | | accurate and up-to-date copy of your records |
| Who is at Risk? Properties in wooded or dry | | | | and policies off the premises in a safe place. |
| grassland areas or located far from fire stations | | | | In Summary |
| are considered at risk. | | | | Once you've determined what the risks are in |
| To determine the level of risk in your area: The | | | | your area carefully review your policies. Keep in |
| National Interagency Fire Center publishes current | | | | mind that policies may offer different levels of |
| fire maps at [ | | | | benefits with regards to property. Evaluate |
| Insurance: It is quite common for insurance | | | | coverage in terms of the structure and content |
| companies to refuse coverage for properties in | | | | of a building, the outer buildings such as sheds, |
| wooded areas or far from fire stations. | | | | barns or garages, landscaping, and temporary |
| Fortunately, unless you are in certain high-risk | | | | living or relocation expenses. |
| areas, many agencies will offer coverage or | | | | Understanding your policies can be difficult. |
| endorsements. Some policies offer benefits to | | | | Nevertheless, it is better to invest a little time |
| help clean smoke damage and cover accidental | | | | now, than worry about it later. If you think your |
| fires or lightening fires in developed areas. Many | | | | insurance coverage falls a little short, shop around |
| insurance companies will extend discounts if | | | | to find the kind of coverage you need or speak |
| preventative products are in place, including fire | | | | with your representative about additions to your |
| alarms or sprinklers, fire extinguishers and | | | | current policy. You may also want to try on online |
| fire-resistant roofs. | | | | service like |
| Tornadoes | | | | References |
| Who is at Risk? Tornadoes are most common in | | | | Association of Bay Area Governments. |
| the states located east of the Rockies. However, | | | | Earthquake Maps and Information, Liquefaction |
| they occasionally do occur in other areas. | | | | and Information. |
| To determine the level of risk in your area: The | | | | Federal Emergency Management Association |
| National Climatic Data Center tracks severe | | | | (FEMA). What is a Flood? |
| weather. To view maps and historical information | | | | The Basics of Earthquake Insurance. |
| related to tornadoes visit | | | | Insurance Information Institute. Earthquakes: Risk |
| Insurance: Coverage for this type of disaster is | | | | and Insurance Issues. |
| usually available through a standard insurance | | | | Kreidler, Mike. Facts about Earthquake Insurance [ |
| policy. Most policies will also cover structural | | | | National Interagency Fire Center. Fire Maps. [ |
| damage from hail that quite often accompanies | | | | U.S. Department of Commerce. NOAA Satellite |
| this type of weather. Damage to trees and | | | | and Information Service, National Climatic Data |
| landscaping is not usually covered unless an | | | | Center. Hurricanes. |
| addition is purchased. | | | | U.S. Department of Commerce. NOAA Satellite |
| Hurricanes | | | | and Information Service, National Climatic Data |
| Who is at Risk? Hurricanes occur most often over | | | | Center. Tornadoes. |