As I watched interviews and footage from Hurricane Gustav, I was saddened by the fact that so many people’s lives in New Orleans could once again be left uncertain. One lady being interviewed held up her house keys and said that it took her 3 years to re-build after Katrina and she had just gotten her new house keys on the day that she once again had to evacuate her home.
As this hurricane season continues with Hurricane Hanna, it is hard for me to understand how people have the courage to re-build in the same location after such disasters. However, it is understandable that people don’t want to leave a place that they call “home.”
However, people do need to make sure they are prepared before disaster strikes. Although you may have homeowner’s insurance, it is best to know what your insurance company offers with regards to coverage. Often times the damage that is caused by a hurricane or natural disaster may not be covered at all.
Some Things that ARE Typically Covered:
Personal Property – Think how much money you have put into purchasing all of the belongings that are located in your home. Your furniture, electronics, clothes, etc. is covered in case something happens such as a fire burns down your home.
Personal Liability – Having people over your home puts you at risk in case anything happens to someone else while they are they. If you are held personally liable for something that happens to another person in your home, often times homeowner’s insurance will cover this liability. This type of incident would be if your neighbor fell down your deck stairs they could potentially take you to court for damages.
Natural Disasters – Only some damages caused my certain natural disasters are covered. These happen to be damage from windstorms, hail, lightning, and volcanic eruptions (now that one really surprised me)!
Some Things that are Typically NOT Covered:
War, Nuclear Accidents, Terrorism – The act of terrorism is new on the not included list. Before September 11th, many insurance companies did cover damages by terrorism. However, insurance companies became clear that they would not cover them after September 11th made the threat appear more real.
Natural Disasters – The more at risk you are for a natural disaster to occur, the more likely it is that your insurance will not cover you. Many insurance companies do not cover people for hurricanes and earthquakes. If you live on the Gulf Coast, insurance companies know that your risk of damage from a hurricane is fairly large and will not offer coverage for you in that area. The same goes for California and earthquake insurance because this is an area where they are typically expected to occur.
Mold and Water/Flood Damage – When you buy a home, you want to make sure that there is no mold damage before you purchase the home because you will end up paying for these to be fixed by yourself. Check out this article on Geezeo about Flood Insurance (which you should definitely consider purchasing if you live in regions affected by hurricanes).
I used to live in Illinois when I was younger and became terrified of the tornados that would occur during the summer months. I loved the area a lot but the one thing that stops me from potentially moving back is my fear of tornados. However, at the same time it puts some perspective on why people stay where they are despite the risks.
When choosing your home, make sure to have it inspected if you have any questions about the property beforehand. Also, if your real estate agent is doing their job, they should be able to tell you the history of the house and if previous residents have had any trouble with floods, mold, etc. It is much better to make sure you are covered for anything potential that may happen, than to find out when it is already too late that you are not.
Photo: Jari
Related Articles:
Gustav is Going, Here Comes Hanna: 5 Costliest Tropical Storms
7 Items your Auto, Home Policies Don’t Cover
Are You Prepared for a Natural Disaster?
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