Why does standard home insurance cover some disasters and not others?
It seems very arbitrary to me, the kinds of things home insurance does and doesn't cover. Why don't some disasters qualify for coverage?
It can be shocking to purchase homeowners insurance and see a list of exclusions, things from which your home is not protected. The two most common perils excluded from homeowners policies are earthquake and flood, and they both have several things in common. They are widespread, beyond human control, hard to predict, and financially devastating to customers and insurance companies. If large portions of one geographic area are affected by one of these disasters, there is a chance that the financial costs of all these claims could bankrupt insurance carriers.
But if you require this type of coverage, don’t worry — you can still be protected. Your insurance policy will provide earthquake coverage if you choose to purchase an additional earthquake endorsement. Instead of a standard $500 or $1,000 deductible, there will be a separate deductible that is a percentage of “Coverage A,” the policy’s dwelling coverage. The standard deductible is 10% or 20%.
If you are in a flood zone and require flood insurance, this coverage can be purchased as a separate policy through your carrier or the federal government’s National Flood Insurance Program (NFIP).
Both types of coverage have additional exclusions and limitations. If you have any questions, it is important to have an open and honest discussion with your agent about your needs to ensure that you are adequately covered.
To learn more about earthquake and flood insurance, check out these articles:
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Let Jerry’s experts help you find savings on your car insurance!
No long forms or spam · Get quotes from 40+ carriers
Read advice from car experts at Jerry
Browse by topics
What others are asking
Will my home insurance pay for damage to a truck caused by my daughter?
"My daughter, who has autism, threw a shovel at our neighbor's truck in a moment of anger. She has these bad moods from time to time and they can be unpredictable. One of the truck's front doors is now damaged. Will my home insurance take care of the repair cost for the truck? "
Apr 08, 2021
How do car insurance companies decide who is at fault for an accident?
"Who is at fault if we two cars back into each other? Recently, I collided with another vehicle in a shopping center parking lot while we were both backing up. When I submit a claim to my insurance company, I'm curious how they will determine which of us is at fault."
Jul 28, 2021
How do I calculate mileage for insurance purposes?
How do calculate car mileage? My new car insurance company (GEICO) is asking me to estimate my annual driving mileage."
Jul 28, 2021