The primary reason you need home insurance coverage for natural disasters is to protect one of the largest investments you’ve made in life. Natural disasters such as fires, floods, hailstorms, windstorms, and earthquakes can severely damage your home. If you don’t have the right coverage, you could be forced to pay more than you might be able to afford for repairs. This guide reviews what home insurance covers and how to decide what you need to stay protected.
Why Do I Need Home Insurance Coverage for Natural Disasters?
According to Natural Resources Canada, climate change has led to increases in the frequency and intensity of natural disasters like wildfires and floods. So, the main reason for having natural disaster coverage on your home insurance policy is for peace of mind. In the event that devastation strikes, you won’t need to pay hefty amounts out of pocket.
Additionally, many lenders won’t give you a mortgage if you don’t have home insurance. While some natural disaster insurance is not mandatory, your lender may want you to have more on your policy for things like floods or earthquakes if you live in a high-risk area.
Before you take out a new policy, you should ask about coverage limits, inclusions, and exclusions.
Does My Home Insurance Cover Natural Disasters?
Most basic home insurance policies typically cover extreme weather like lightning, hail, wind, or fire. However, specifics can vary between insurance companies and policies. What you pay for coverage may depend on where you live and the history of natural disasters in that region.
What Natural Disasters are Covered Under My Policy?
As previously stated, home insurance covers common extreme weather damage from fire, wind, ice, heavy rain, and lightning. In some cases, other natural disasters may require adding special coverage for things like earthquakes or floods.
Most Canadians wouldn’t guess that some parts of Canada experience earthquakes because they’re less common or severe than what you hear about in international news. An earthquake can still do significant structural damage to a home, however, and you could be on the hook for repairs if you didn’t take out an earthquake policy.
Before you purchase a home, you should ask for a report about which natural disasters are most common in your region and add earthquake coverage to your policy if you live in a high-risk area.
Canadians living near any body of water should be concerned about floods. The peak flood season is in the spring when ice and snow melt and the weather begins to change. The melting water and increased rainfall cause local bodies of water to overflow. You’re at an even greater risk of flood damage if your home rests on a lower elevation because water runs downhill.
Flood coverage protects you from damage or destruction of your home due to high water levels. If your home floods, it can warp the wood in your flooring and walls, damage drywall, ruin your possessions, and invite algae or mould into your home. Adding flood insurance protects you from paying a massive repair bill out of pocket.
How Tanner Insurance Can Help
Home insurance protects you and your family from uncertainty, so it’s crucial to have a comprehensive policy, especially if you live in high-risk natural disaster areas. At Tanner Insurance, we’re here to help you find the best coverage to suit your needs and budget. Reach out to us today, so we can review your current policy and recommend how to get the most out of your money while still protecting your home and those you love.