Geological Survey (USGS) updated its long-term seismic hazard maps in 2014, and they showed increased earthquake risk for half the country. A temblor damaged the Washington Monument in 2011. "So, if there is shifting, it's not covered by a standard homeowners policy."Įarthquake coverage can help protect against these potentially life-shaking events. "It can be any kind of earth movement," Scaturro says. You don't need to live on a fault line to incur earthquake damage, as defined by insurers. So don't wait until disaster looms to buy coverage. There is usually a 30-day waiting period from the date of purchase before the policy goes into effect.Flood insurance is available through USAA via the NFIP, which is underwritten by the Federal Emergency Management Agency (FEMA).See note1 Just a few inches of water in a home can cause tens of thousands of dollars in damages. In 2021, the average residential flood claim resulting from Hurricane Ida was more than $55,000."If it can rain, it can flood," Scaturro says.įlooding can also come from a burst pipe, or a neighbor's careless mistake of leaving the bath running. Are floods covered by homeowners insurance?ĭon't assume just because you aren't near a river or coastline that you aren't susceptible to flooding, which occurs any time groundwater enters a house. If you want to avoid the unexpected costs of getting caught without coverage, it's important to understand what homeowners insurance doesn't cover - and how to fill those gaps with separate policies or endorsements. "But misunderstanding the limits of your policy can be an expensive mistake." "Gaps in homeowners insurance aren't always well-understood,” says Sean Scaturro, Advice Director at USAA. Far too many people live under the assumption that their policy covers just about everything. You might be thinking, "That would never happen to me!" But the unfortunate reality is that misconceptions about homeowners insurance are quite common, both in high- and low-risk areas. Less than 40% of homes in the Florida Panhandle had active National Flood Insurance Program (NFIP) policies in place when Michael made landfall. Sadly, it seems many residents were not aware of the financial risks they faced - even if they knew they were in hurricane territory. Flooding is also typically excluded, which can limit coverage for damage from heavy rains and storm surge. Homeowners policies may have exclusions or limitations for damages due to certain weather conditions like wind or hail. Many thought their standard home insurance policies would cover damage from the storm. See note1įor some homeowners it was more than a natural disaster. See note1 Almost $5 million of that damage was at Tyndall Air Force Base. When Hurricane Michael hit the Florida Gulf Coast as a Category 5 storm in 2018, it caused over $25 billion in damage.
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