Natural disasters often strike without warning and cause extensive damage to homes, vehicles, and businesses. Landlords with the appropriate insurance coverage in place typically recover more quickly and effectively from these catastrophes. Knowing and understanding what is included in your policy—and what may require extra protection—is crucial. Here is a breakdown of the key elements to consider.
Types of Disasters Covered
Most standard landlord insurance policies will cover specific types of natural disasters; however, they do not cover all of them. Typically, standard policies protect against:
- Windstorms and hail
- Wildfires
- Lightning strikes
- Snow and ice damage
- Tornadoes
These perils are usually covered under the "perils insured against" section of your policy. However, some events—such as earthquakes and floods—are often excluded and must be covered by separate insurance.
Auto insurance may cover damage from natural disasters if you have comprehensive coverage, which protects against non-collision-related damage like fire, flood, or falling objects.
Additional Coverage Needs
Standard policies offer basic protection, but some disasters require specialized coverage. Two of the most common exclusions are floods and earthquakes:
- Most homeowners’ policies do not cover flood damage. So, if you live in a high-risk flood area, you'll likely need a separate policy through a private insurer or the federal National Flood Insurance Program (NFIP).
- You can purchase earthquake coverage as an endorsement or a standalone policy. This coverage is critical in areas where seismic activity is more common.
Other optional coverages include:
- Sewer backup coverage
- Extended replacement cost coverage that accounts for rising construction prices after a disaster
- Business interruption insurance for commercial properties, covering lost income due to temporary closures
It's a good idea to review your policy annually and consult with an insurance professional to ensure you're adequately protected, considering your location and risk profile.
Claims Process
If you're affected by a natural disaster, knowing the claims process ahead of time can ease stress during a difficult time. Here's what to expect:
- Report the claim promptly to your insurer as soon as it's safe to do so. Provide details about the damage and the event.
- Document the damage by taking photos or videos of the destruction before making any repairs. Keep all receipts for emergency repairs or temporary lodging.
- An insurance adjuster may visit to assess the damage. Be honest and thorough during the evaluation.
- Receive your settlement after the claim is approved, allowing you to begin repairs or replacement.
Some insurers offer disaster response teams and digital tools to help streamline the process, so it's worth exploring these options when choosing a provider.
Being proactive about natural disaster coverage can save you time, money, and stress. Understanding your policy, supplementing it where necessary, and being prepared to file a claim can enable a faster and smoother recovery when the unexpected occurs.
Stay Protected with Landlord Insurance
Are you looking for an excellent price on landlord insurance? Contact our team today! As independent brokers, we will shop the market to find you the best deal on quality landlord insurance!
Call American Insuring Group today at (610) 775-3848 or contact us online to start saving.
