How To Shop For The Best Disaster Insurance Policy Provider

Disaster Insurance

When safeguarding the future of your home, you want to ensure that your insurance policy is as comprehensive as it can get. By saying comprehensive, we mean it must be able to cover you from natural disasters too. You don’t want a situation whereby you are dumped by your insurer in the last minute a disaster strikes.

So here’s how to shop for good disaster insurance policy providers:

1) Do they cover all ”acts of God”?

Many home insurance providers cover a wide variety of risks such as fire, theft and even items lost. However, they might not be able to protect or replace your losses in case a hurricane or a flood strikes.

If you currently have a general cover, you may need to pay more in order for your insurer to protect you from the impending danger. Again, not all losses related to flooding is covered. This means you might have to look for an insurance company that provides a specialized policy on flooding.

2) Hurricanes and Tornadoes

Your insurer might cover natural disasters. However, don’t be shocked that your policy doesn’t provide for floods that cause destruction after a storm surge resulting from a hurricane.

Damages caused by tornadoes are classified as wind damage, so they are mostly covered by home insurers. If you live in areas prone to these risks, i.e Florida and Louisiana, you may need to purchase a special beach and windstorm cover. Because most of these insurers are in the business of making money off your pocket, ensure you understand the fine print of the policy you’re being given.

3) Know how much cover you need

Every home location and needs is different. If you recently took a mortgage for that matter, your lender can help determine how much coverage you need. They may choose a coverage that takes care of the mortgage to the very least. The better the coverage, the less you pay when a disaster strikes.

4) Compare deductibles

This is the amount one has to pay from their pocket in case a disaster strikes. It applies to damages related to your home or personal property. Therefore, when choosing a good policy, ensure you will be comfortable paying the deductible in case you’re making a claim.

5) Actual cash value and replacement cost

The actual cash value is the amount it would cost to replace the home after damage. Depreciation is not considered. On the other hand, the replacement cost takes care of the cost of building the home afresh, plus the cost or replacing materials and components of your home with similar value and quality to those that were destroyed. It is important that you choose carefully. If you consider the option of replacement cost, ensure that it covers at least 80% of the value of your home.

6) Consider discounts

It’s good to have your car and home insured by one company. This way, the company in question may give discounts. Again, if you have security equipments or other items that can reduce the extent of damage in case a disaster strikes, these companies will give you discounts on policies.