Homeowners Insurance Primer

While REALTORS^® are not expected to be insurance experts, here’s a quick primer to help define what a standard home insurance policy versus a disaster insurance policy should cover. It’s important to note that disaster insurance coverage varies by state, company and product.

Disasters typically covered by a standard homeowners policy include :

Fire/Lightning (with exceptions) ?  Windstorms/Hail ?  Freezing of Plumbing/Pipes ?  Damage from Weight of Ice ?  Volcanic Eruptions (with exceptions)

Natural catastrophic disasters that typically require supplemental insurance include :

Flooding

For the most part, homeowner policies exclude flood-related damage, except for cases related to flooding from damaged plumbing infrastructure, like leaking pipes. If living in an area where floods are common, a special flood protection policy may be recommended.

---

Storm Coverage: Hurricanes and Tornadoes

Homeowners insurance generally covers natural disasters related to wind damage, which includes tornadoes and hurricanes, although flooding after storm surges from hurricanes is not included. If a home is in an Atlantic or Gulf Coast area, with increased susceptibility to hurricanes, flood insurance and/or special beach and windstorm insurance may be necessary.

---

Earthquakes

The cost and need for earthquake insurance is determined by a home’s location, building materials, foundation integrity, number of stories, insured value and the policyholder’s chosen level of coverage. Therefore, supplemental earthquake insurance is judged on a case-by-case basis.

---

Volcanoes

Homeowner insurance policies often cover damage from an unlikely volcanic eruption. Specifically, standard policies cover damage related to ash, dust, particle matter, lava flow and the initial removal of these materials. However, landslides, shock waves, tremors and ash deposits from wind are not covered by most policies. For extended protection, homeowners living near active volcanoes may want additional coverage for volcanic disasters.

Read more about flood and disaster insurance.