Does a Basic Home Insurance Policy cover all Natural Disasters?
Over the weekend the reality of how fast a natural disaster can happen hit home with one of our own. A Windstorm blew in swiftly and took down a tree of this size! There was damage to home and property. This reminds us to ask the right questions on insurance Policies to ensure we are protected for the losses that affect us.
Generally, weather related natural disasters are covered by a basic home insurance policy, but if you live in a high risk area, such as a flood plain, or an area susceptible to wildfires you may have to pay more for your general policy to cover the increased risk.
WHAT IS A PERIL?
A peril is what causes the loss, for example fire, and lighting. Your standard homeowner’s policy would include both insured, and uninsured perils. A home insurance policy is not a maintenance contract so basic deterioration, and faulty workmanship are what we call uninsured perils; While sudden and accidental escape of water is an insured peril, as it is an unavoidable loss.
TYPES OF POLICIES:
A SPECIAL/COMPREHENSIVE policy covers the building and personal property, on an all risk basis, so unless specifically excluded you would have coverage. One of the benefits of having a comprehensive/ all-risk policy is you are covered for Mysterious disappearance. In other words “I don’t know where it went” this is great for anyone with toddlers.
A BROAD form policy insures your house for all risks on the building, but only named perils on your belongings, so unlike above unless it’s listed as an Insured peril in your policy wordings you would not have that coverage on your belongings.
A NAMED PERILS/ FIRE AND EXTENDED COVERAGE policy only insures your house and personal property for the perils specifically named in the policy. This is not a form that is used often in the industry anymore, if you have this type of policy it would be on an older seasonal or mobile home.
Did you know that all of the above policy types would cover the loss as mentioned at the beginning of this article ie. Windstorm? So no matter what policy type you have Windstorm, Fire, Lighting, and Explosion are typically always covered in the event of a claim.
If you have questions about your insurance coverage, or would like to review your current policy, please contact us today.