Should You Invest in Flood Or Earthquake Insurance?

There are two types of insurance in particular that you should consider if you are a home owner. These are flood insurance and earthquake insurance. Of course, this is not for everyone, but if you live in an area where either of these is highly relevant, acquiring either of these is a solid investment. However, if you are living in an area that is prone to floods or earthquakes, it is important to understand that most property policies will not cover these disasters. On the flipside, some independent carriers in fact offer both. For flood insurance, you can also contact the National Flood Insurance Program if you cannot find a provider which covers flood insurance. In California, you can obtain earthquake insurance through the California Earthquake Authority.

Flood insurance represents the specific insurance coverage against property loss from flooding. To settle on the risk factors for specific properties, insurers will often look at topographical maps that refer to lowlands and floodplains that are at risk for flooding. Insurers in the US do not provide flood insurance coverage due to the hazard of flood typically being confined to a few areas. Because of this, it is an objectionable risk because of the inability to extend the risk on a broad enough populace to suck up the latent disastrous nature of the vulnerability. As a result of this, the federal government formed the National Flood Insurance Program in 1968.

Some states only have one type of natural disaster, and that is the earthquake. For this reason, it is highly recommended that you invest in earthquake insurance if your state is prone to this natural disaster. Most likely the most imperative thing to recognize about earthquake insurance is that a basic homeowners policy will not cover earthquake damage. But even if you do not live in an area where earthquakes are common, it is possible that you might need earthquake insurance.

Every year, more homeowners get rid of their earthquake coverage than buy it because, according to end user groups, consumers carry the belief the policies cost too much and cover too little. Earthquake insurance can be quite inexpensive depending on where you live. It is a good idea to contact your insurance agent or company to find out what the costs would be for your home.

Not surprisingly, Californians buy the most earthquake insurance, but earthquake insurance has been sold to residents of all 50 states. But earthquake insurance is not like health insurance or auto insurance. It is catastrophic insurance. It is what insurance was invented for in the first place, which is for protecting yourself against a destructive financial loss that will come to pass at some point in the future, even if it is not to be in your lifetime.

Is it available, and is it too pricey? That depends on the insured value of your home, the location of your home, and the age and construction type of it, in addition to your delivery service and your deductible. Either way, those are the facts, and now that you are equipped with the knowledge, it is now a little easier to know whether you should invest in either flood or earthquake insurance.

This article was brought to you by Southern Insurance Group. They are a true independent agency that will shop for the best homeowner coverage. They are the insurance experts with over 25 of the top insurance companies throughout the industry. For immediate insurance needs you can call 352-243-9000.