How to Make Sure You Are Insured Against Catastrophes

Does your homeowner policy provide protection against catastrophic events? Most people assume it does, but the reality is often far removed from common expectation. Following are some things you should know in order to obtain the right policy for your home and family:

Catastrophic coverage includes rare events, ranging from wars and terrorist events to sinkholes, earthquakes and other natural disasters. Most insurance policies omit deliberate destruction or social events such as war or terrorist attacks since these events occur outside the normal day-to-day function of society. On the other hand, natural disasters can also result in catastrophic losses to an individual or group of individuals but are within the normal dictates of anticipated events.

Most homeowners will not need every form of catastrophic coverage. Depending upon where you live, some events are more likely than others. For example, Florida residents may be prone to hurricanes and sinkhole damage, but those issues are of little concern to residents of other states.

Sometimes the difference between standard coverage and catastrophic coverage can be difficult to ascertain. It’s vital to speak with your agent to determine the right cost/risk ratio for your situation.

Catastrophic coverage should be purchased as soon as possible because it’s often too late once an event has occurred. Underwriters are not able to write new hurricane policies once a storm is scheduled to arrive.