Am I covered when it comes to disasters?

Homeowners insurance policies don't provide coverage for all disasters. That is why it is crucial to know what your policy does cover in the event of an emergency. A standard homeowner policy doesn't cover flood or earthquakes. You should also bear in mind that there are certain limits to how much your insurance company will pay. These limits depend on the terms of your policy.

Did you ever consider purchasing earthquake insurance? Living in areas that are most vulnerable to earthquakes isn't safe without the proper coverage. By purchasing the proper coverage, you won't have to worry about the earthquake hitting your home.

You will be able to purchase earthquake insurance and it will work as an addition made to your policy. Terry Moore of Barney & Barney says, "In California, where earthquake fears are a daily fact of life, only 17 percent of homeowners, and 20 to 25 percent of people in all types of housing, have earthquake insurance.'

Along with earthquake insurance, you should also consider flood insurance. Flooding is the second most common and widespread of natural disasters. Bear in mind that a standard home insurance policy does not cover flooding.

Even if your risk is relatively low, NFIP recommends getting flood insurance. NFIP claims, "The fact that a flood hasn't occurred within memory doesn't mean one won't happen soon.'

Another peculiar kind of peril includes windstorm insurance. This usually provides coverage for fallen branches and loose shingles that damage your home. The windstorms that blow off in the Atlantic Ocean can result in serious damage - particularly in the coastal areas.

More than $15 billion was spent by the insurance industry and pushed a number of insurers into bankruptcy in 1992, when Hurricane Andrew hit. When insurance companies are taking a lot of losses, they tend to pull out of markets, which is usually bad news for consumers. Each state handles such problems differently because insurance is regulated at the state level.

If you are unsure which policy you should purchase, contact your insurance agent for recommendations. If you live in California, for example, purchasing earthquake insurance would be a smart decision.

If windstorm coverage is not covered under your policy, then you should think about purchasing it, or maybe looking for a policy that will include windstorm peril. Floods, earthquakes and windstorms are all serious natural disasters that can end up causing much damage. If you think that it would be best to be protected for such cases, contact your insurance agent.