Hurricane Florence caused an estimated twenty to thirty billion dollars’ worth of damages when it hit the southeast of the United States in September of 2018. This is according to CoreLogic, a data analyzation company who studied the aftermath of Florence’s devastation. Even more harrowing is the fact that homeowners’ insurance alone does not cover flood. There is a special policy dedicated to flood insurance and ninety percent of North Carolina’s residents did not have it.
Unfortunately, many people across the country, especially along the coastlines would be up the river, missing that very same paddle. Many people take their homeowner’s insurance for granted, believing that the whole house is covered, no matter what. The truth, however, is that when relying on homeowners’ insurance alone, it is more beneficial to face an erupting volcano.
Acquire Flood Insurance
People who live in a coastal state should obtain flood insurance. This is evident in the horrific aftermath of Florence, but it is not the first indication. Even more disturbing though, is it likely is not the last.
Private insurance companies offer flood insurance policies. They can be obtained much like a person gets homeowners or even auto insurance quotes online. However, these policies can only be obtained, obviously, before a flood occurs.
Other Disasters Uncovered
Flooding is not the only natural disaster that is not covered by homeowners’ insurance. Usually, that is the most common disaster or circumstance. Although, there are also a few other disasters and caveats that are disqualifications for insurance coverage:
• Sinkholes: Sinkholes are often random and unpredictable. For minimal damage because of a sinkhole, a homeowners’ insurance policy will usually cover it. Yet, if disaster strikes, the only way the insured is covered is if they have sinkhole insurance.
• Earthquakes: Californians have a greater threat of earthquakes, due to the location of the state. Thus, they have the option of getting Earthquake Insurance through the California Earthquake Authority. Additionally, there are other private options, but regular homeowners’ insurance does not cover earthquakes.
Options for Uninsured
For the uninsured, though, there are some options. Fortunately, they are not left to drown in the shattered remnants of their former life; at least, not exactly. If disaster strikes and homeowners are not insured to cover the damage, there are two options. The first is relief from the Federal Emergency Management Agency (FEMA). The second option is to obtain a small business loan.
However, it is important to note that these options are still limited. It is not a good idea to rely on these options. They are subject to approval and in the chaos of a mass disaster, especially, obtaining this funding is difficult. Plus, insurance is designed to return a person or family to the stability they had before the disaster. FEMA and small business loans are only meant to help the person or family get back on their feet.
In summation, it is amply important to have the necessary insurance, depending on where you live. Before moving to an area, do not forget to inquire about the common insurance policies held in the area. After all, disaster can strike at any moment. It is much better to be prepared.
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