Understanding How Disaster Insurance Works

Dated: November 3 2021

Views: 360

Aug 23, 2021

Alisha Fairman
How Disaster Coverage Works
Depending on your insurer and the type of disaster coverage you want to get, there are a few different ways that you could get this additional coverage. You may be able to buy blanket disaster coverage that covers multiple disaster types, though even it may have a few exceptions built in. If this isn’t available or if you want coverage for specific types of disasters, you may be able to buy single-disaster policies that only cover individual disaster types. Depending on your insurer and policy availability, your disaster coverage may be available as separate policies, or it may simply be an addition to your existing homeowner’s insurance.

Once you’ve taken out your disaster coverage, it will function similarly to your existing insurance. Should a disaster occur, your claim will be filed against your disaster policy or any disaster add-ons you’ve purchased instead of your standard homeowner’s insurance. Depending on the type of disaster and any other damage that may have occurred, there may also be claims made against your health insurance, vehicle insurance, or other insurance types; disaster insurance won’t replace or supersede any applicable insurance, it just helps to close gaps that previously didn’t have coverage.

 Do You Need Disaster Insurance?

Whether you want to pay the additional costs of disaster insurance largely comes down to personal preference. By their nature most disasters are pretty rare, though some areas are more prone to disaster than others. The more likely it is that you could wind up in a disaster, the more beneficial disaster insurance would be to you, but keep in mind that disasters can still strike in locations where they aren’t common. It is also worth noting that if you live in an area where occasional disasters are likely (such as a flood plain that has a track record of heavy flooding during certain seasons) then you may not be able to get some types of disaster insurance or may have to pay higher premiums.

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Brad Fairman

Iconic Property Advisor Team Founder Brad Fairman was a deputy with the Brevard County Sheriff’s Office. As such, protecting others was and remains part of his “occupational DNA.” As his career ....

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