What Is Catastrophe Insurance?
What Is a Catastrophe and What Does Insurance Cover?
Disasters that can be covered by insurance include:
To get coverage for these storms, you typically need to get a separate policy or a rider on your homeowners insurance, especially in certain high-risk areas.
Earthquake insurance is a separate coverage in high-risk areas along fault lines, generally in California, Alaska and Hawaii.
You may want windstorm insurance if you live in the Great Plains and the central states area known as “Tornado Alley.” This coverage is typically a part of a homeowner’s policy.
Hail damage is usually covered in a common homeowners or auto policy; coverage of hailstorm damage on a car can be handled through comprehensive coverage if it’s in force at the time of the storm.
Forest or brush fires are catastrophe events, but fires that burn down a house or destroy a car can be covered as part of a homeowners or an auto comprehensive policy. A fire intentionally set by the home or car owner is excluded from coverage.
Flood insurance is a separate policy for homes, usually applied to those who live on a flood plain. Flood damage can be part of a comprehensive policy on a vehicle.
Coverages for giant waves and related flooding are typically separate from your homeowners policy and only available in high-risk areas along coastlines or on islands like Hawaii.
Damage from these events may be included in your homeowners insurance, but some policies exclude these catastrophes and require separate coverage.
You would need to purchase this as endorsement separately, though fire coverage in your home insurance can typically cover a portion of the loss.