You’ve probably seen TV footage showing the aftermath of natural disasters: trees tossed through roofs by windstorms, homes burned to the ground by wildfire, living rooms underwater after a flood. First you feel sympathy, then concern. What if something like that happened to you? Would your homeowners insurance policy cover the damage?
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The answer is . . . maybe. Insurance coverage for damage caused by such events varies widely, depending on where you live and what kind of coverage you’ve purchased. For example, your aunt who lives five minutes away might live in a flood zone and be required to carry flood insurance, but you might not.
The best way to determine what coverage you have—and need—is to talk with your insurance agent. To help you start that conversation, here’s a guide to typical disaster-related insurance coverage.
Fire
Nearly all homeowners policies cover fire damage, whether caused by a lightning strike, kitchen fire, or wildfire. However, some cover the entire cost to rebuild your home to current standards regardless of the rebuilding cost, and others cover only up to a specific limit. If you’ve built an addition or remodeled since your policy was originally purchased, ask your agent to make sure you have adequate coverage to rebuild. Also, ask about loss-of-use coverage, which would help pay for additional living expenses while your home is being rebuilt or repaired.
Flood
If you live in a flood-prone area, your mortgage lender probably requires you to carry flood insurance. Most home insurance carriers, including the Auto Club’s insurance affiliate, do not write flood insurance.
Instead, you must buy coverage through the National Flood Insurance Program (NFIP), which works with private insurers that sell and administer the flood policies for the NFIP in participating cities and counties. NFIP insurance covers damage to your home and its contents only in specific situations—when inland waters overflow, for example. More information is available from the National Flood Insurance Program website.
read more at: http://www.calif.aaa.com/westways/2012/07-08/Pages/natures-wrath-homeowners-insurance.aspx
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