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property insurance

Why You May Need Natural Disaster Insurance

By //  by Khaleef Crumbley

Although most homeowners have a basic homeowners insurance policy, or even home contents insurance, many do not have natural disaster insurance. However, with the recent destruction from Hurricane Irene and Hurricane Lee, the importance of being fully covered has been made clear.

Why You Need Natural Disaster Insurance

If you only have a standard homeowners policy, you’re not covered for damage to your home or possessions in the event of an earthquake. This includes the damage occurring from the shaking and cracking associated with earthquakes and aftershocks. You would have to take out a separate earthquake insurance policy in order to be covered.

According to the Insurance Information Institute, many standard homeowners policies will cover you for direct losses due to fire, lightning, tornadoes, wind storms, hail, explosions, smoke, vandalism and theft. However, the limits may not be enough to fully cover all of your damages.

Many policies will also limit the amount of coverage due to damage from hurricanes and other windstorms as well. It is best to contact them ahead of time and find out exactly what your coverage entails. Then make sure that you follow a hurricane preparedness guide in order to minimize damage.

Flood damage is not included in your homeowners policy, so you will have to take out natural disaster insurance if you live in a flood-prone area. Flood insurance is actually provided by the federal government, and administered by the Federal Insurance Administration. Flood insurance also covers the damage that you incur as a result of a mudslide.

Another thing to consider is having the proper motor insurance. Many times we only focus on our homes, but many people have their cars destroyed during natural disasters; so it makes sense to ensure that you have the proper coverage ahead of time.

How Much Natural Disaster Insurance Do I Need

Like most types of coverage, if your home is destroyed, your natural disaster insurance policy will pay you for the “actual cash value” of your home (the replacement cost minus depreciation). The key is to make sure that your coverage amount will be enough for you to rebuild.

It would be wise to do some research on building costs before you choose your amount. One thing to keep in mind is that costs may be inflated (you may even have to deal with price gouging) because of the increased demand for contractors and building materials after a natural disaster!

Also, be sure not to use the purchase price of your house as a basis for your calculation. The market price of your house includes the value of the land on which the house is situated. Most likely, the land will still be there after a disaster, so it would be a waste of money to include its value in your coverage calculation.

What About An “Acts Of God” Insurance Policy?

The term “acts of God” is not specifically mentioned in homeowners policies, so it can mean different things to different people. However, it is usually used to describe natural disasters (such as tornadoes, earthquakes, and hurricanes) as opposed to man-made destruction such as theft and negligence.

Therefore, you will not be able to find a specific “acts of God” insurance policy, but you will be able to cover yourself by purchasing natural disaster insurance. While you’re checking into all of this coverage, be sure to get a few life quotes as well. The most tragic part of any disaster is the loss of life – especially when a family is left behind with nothing.

photo by U.S. Fish and Wildlife Service – Northeast Region

Filed Under: Insurance Tagged With: coverage, damage, earthquake insurance, environment, expatriate insurance, federal insurance, flood insurance, home insurance, Insurance, insurance information institute, motor insurance, natural disaster, natural disaster insurance, property insurance, types of insurance

The Importance of Home Contents Insurance

By //  by guest

(The following is a guest post on behalf of Money Supermarket.)

It can be a case of trial and error with many of the expenses associated with owning or renting a property.While shortcuts are readily taken when it comes to things like DIY, there are times when it’s in your best interests to play it safe and by the book. Like when the topic of whether or not to invest in homeowner’s insurance and home contents insurance arises.

The Benefits Of Home Contents Insurance

Yes, it involves paying year on year and we probably all agree that this is money we’d rather put towards a holiday, a new car, or even student loan repayments. However, the benefits of getting home contents insurance far outweighs the risks.

The peace of mind alone is priceless, as you know that if something goes wrong – whether through any fault of your own or otherwise – there are certain procedures and protocols in place to protect you and your family, and safeguard your investment. Then there’s the fact that, in the long run, it could end up saving you a small fortune if a curve-ball is thrown your way and you end up having to make a substantial claim, which is not as uncommon as you may think.

What To Look For When Shopping For Home Contents Insurance

Buildings and contents insurance should cover a range of universal themes, although it is advisable to check and double check with an insurer before handing over any of your hard-earned cash if you’re worried or concerned about anything in particular.

By starting a policy, it ought to mean that the cost of repairing or rebuilding your home or any outbuilding like a shed or garage in the event of the unthinkable happening will be covered. The list of possible scenarios is endless, from storm damage to fire damage or frozen pipes to burst pipes.

If you’re forced out of your house while any work needs to be carried out, then the insurer will often pay for you and your loved ones to find alternative accommodation on a temporary basis. Some companies offer a 24-hour emergency helpline as well for an additional fee to cover things like a boiler breakdown.

Home contents insurance means that your belongings are covered against theft and accidental damage. Items like carpets and furniture can be expensive to buy in the first place, so the last thing you want is to be facing a bill to replace them because you didn’t take out the right insurance policy. The contents of your freezer, garden and shed could even be included, too, so be sure to check the terms and conditions and read the small print in order to be fully aware of exactly what you are paying for.

photo by think4photop

Filed Under: Insurance Tagged With: benefits, content insurance, contents insurance, Economics, finance, financial economics, get home contents insurance, home contents insurance, home insurance, homeowners, Insurance, property insurance, types of insurance

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