Does Homeowners’ Insurance Cover Damage Caused by Flooding or Earthquakes?

You bought an insurance policy for your home. You have peace of mind now, in the event something happens to your home. But you should not get too comfortable just yet.

Homeowners’ insurance does not provide 100% coverage. It does not cover all natural disasters, which is surprising to some homeowners. Most standard policies do not cover disasters like floods or earthquakes. That is because these events are very costly, especially in high-risk areas.

What this means is that if you live in a disaster-prone region, you will likely face higher insurance rates. You may also need to seek out extra coverage from specialized policies and providers.

But you should not wait too long to get insurance coverage. If you try to buy insurance right before a natural disaster strikes, you may find that it’s not possible. When severe weather or other catastrophes are imminent, insurers often place a moratorium on new policies and coverage changes in the affected areas.

A moratorium is a temporary freeze. It prevents people from purchasing last-minute coverage for an immediate threat. You cannot increase or adjust coverage limits or switch insurers.

Not sure what this means for you? Here’s what you need to know.

What is Covered?

Most standard homeowners insurance policies cover “named perils” or “all-risk” (with exclusions), depending on your policy type. Generally, the following disasters are covered:

• Fire and lightning. Almost all policies cover fire damage, whether from a house fire, lightning strike, or wildfire.
• Windstorms and hail. Wind damage from storms, tornadoes, or hurricanes is usually covered, unless your policy specifically excludes it. Some coastal policies may require a windstorm or hurricane endorsement.
• Weight of ice, snow, or sleet. If a roof collapses under heavy snow or ice, your insurance typically covers repairs.
• Explosions, smoke, or civil disturbances. Events like a gas explosion, smoke from a fire, or even damage from riots are often covered.
• Volcanic eruptions. These are rare, but covered under most standard policies. This includes damage from ash, lava, and shockwaves.

What Natural Disasters Are Excluded From Standard Coverage?

Certain catastrophic events are not included in standard homeowners policies and require special coverage:

• Floods. Flood damage from rising water, storm surge, or overflowing rivers requires separate flood insurance through private insurers.
• Earthquakes. Earth movement, including tremors, sinkholes, and landslides, is excluded unless you add an earthquake endorsement or separate policy.
• Landslides and mudslides. Considered “earth movement,” a Difference in Conditions (DIC) policy is often required for coverage.
• Sinkholes. This coverage is not available nationally, but states like Florida or Tennessee require insurers to offer sinkhole protection.
• War and nuclear hazards. This is excluded as an uninsurable risk.
• Neglect or poor maintenance. Insurance does not cover damage that could have been prevented, such as ignoring a leaky roof that later collapses during a storm.

Contact Us Today

Homeowners insurance may be pricy, but you need to realize that not everything is covered through your policy.

The team at Hartman Insurance Agency, Inc. can help you understand your homeowners insurance policy. Our Saline, Michigan, agents are ready to help you find the best policy for you. Contact us via (734) 999-4190 or online here to schedule a consultation.