How to Get Insurance Protection Against Natural Disasters

Basic home owner's insurance does not cover every contingency. If you live in an area where natural disasters, such as floods or earthquakes, occur, you need to buy additional protection to cover your home in the form of rider on your home owner's policy.

Difficulty: Moderately Easy

Instructions

1. Check with the U.S. Geological Survey, in your local phone directory, or the Federal Emergency Management Agency (FEMA) for maps showing the earthquake and flood risks in your area. FEMA can be reached at [phone].

2. Contact the federal flood insurance program for background information on the types of policies available through private insurance companies. The federal flood insurance program can be reached at [phone].

3. Call several different insurance carriers.

4. Ask them specifically about their rates for riders covering the current value of your home for flood, earthquake, hurricane or other natural disasters.

5. Go with the carrier that offers the best balance of rates and protection for your situation.

Tips & Warnings

• When purchasing your home owner's insurance, be sure you consider including an inflation rider or clause. This will help keep up your protection at a pace with inflation.
• One way to take some of the financial sting out of the decision to purchase extra protection is to raise your deductible on the basic home owner's insurance or even your automobile insurance. This will reduce your premiums.
• In flood-prone areas, your lender will require you get flood insurance.
• Don't try to assess the probability of disaster. Never think that it can't happen to you.
• While some areas, such as California, are obviously earthquake-prone, be sure to check your particular region. Parts of the Midwest and even the East Coast have very active fault lines.

on 11/22/2005 After a natural disaster hits your area, some insurance companies stop writing new policies. Don't let your current insurance lapse so that you can even get this type of insurance.