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What to Know About: Insurance

YP Editors

Can I get insurance for natural disasters?

Yes. These are known as perils, and may include fire, flooding, natural disasters and other catastrophic events. You may want to purchase insurance against one or more of these perils if you live in a high-risk area.

What is covered by home insurance?

There are many types of homeowners coverage, and the specifics of each dictate exactly what is and isn’t covered. The most essential type of coverage will pay for the cost of repairing a home in the event of a natural disaster, fire or other calamity.

There is also coverage that will take care of damages wrought to other structures, like detached garages, sheds, or fences.

Personal property coverage is available to account for some, or all, of the costs of certain items that are damaged or stolen. If you must live away from your home for a period of time due to damages to your residence, the costs of hotels, restaurant meals, laundry, etc., can be covered, as well.

If you rent an apartment, check what your renters insurance policy covers.



Does home insurance cover flood damage?

No. Home insurance will cover damage from a burst pipe or from a leaky roof, but it will not cover flood.  A flood is temporary rising of water on land that is normally dry, causing general damage to multiple properties. Examples include a river or lake overflowing, mudslide, or water seeping into a home basement due to heavy rain.

Does home insurance cover water damage restoration?

Home insurance sometimes covers water damage from storm-related accidents. However, most plans do not cover damage resulting from lack of maintenance or floods. For the latter, homeowners should purchase flood insurance.

Does home insurance cover earthquake and damage caused by other natural disasters?

Earthquakes, floods, tornadoes, and other natural disasters are not typically covered by home insurance--there are separate insurance coverages for them that can be purchased.

Does car insurance cover damage by storms and hurricanes?

Standard car insurance won't. However, adding optional comprehensive coverage would, and can even replace your car if severally damaged by flood or falling objects.

Does boat insurance cover damage by storms and hurricanes?

Some insurance companies offer boat insurance that covers damage by storms and hurricanes, but this kind of coverage might not be a standard part of a policy’s coverage. If you want this kind of protection, tell an insurance broker.

What damages does flood insurance cover?

Flood insurance covers weather-related water damage, including some types of roof leaks and overflowing balconies. On a home, it covers the foundation, plus permanently installed fixtures, such as electrical, plumbing, heating/air conditioning, kitchen appliances and cabinets, paneling and carpet, plus detached garages (up to 10% of your homeowners policy), and debris removal. For personal property – a separate policy – it pays the current cash value for clothing, furniture, electronics, washer/dryers, frozen food, and up to $2,500 in valuables, such as art and furs.

What types of damage is not covered by flood insurance?

Flood insurance won't cover anything related to cash, precious metals or stock certificates. It also won't cover vehicles, post-flood mold damage, basement contents, sewer backups, temporary housing costs, or loss of income. Broken or leaking plumbing is not a flood loss, but might be covered by your regular property coverage. Outside the home, trees and plants, fence, pool, deck or patio, and retaining walls are on the long list of what flood insurance will not cover.

For more information about what to do after a major disaster damages your home and property, see the following articles:

What to Know About: Electrical Work

What to Know About: General Contractors

What to Know About: Water Damage

What to Know About: Tree Cutting and Removal

What to Know About: Roofing

What to Know About: Auto Damage
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