Natural Disaster

What Does Natural Disaster Mean?

A natural disaster is an event caused by natural forces that can result in significant harm to property or people. Many insurance policies provide coverage for natural disasters to shield individuals from the devastating financial hardships these events can cause.

Insuranceopedia Explains Natural Disaster

Tornadoes, earthquakes, tsunamis, hurricanes, and volcanic eruptions are examples of natural disasters capable of causing immense damage. The type of natural disaster coverage offered in property insurance policies often depends on a person’s location. For example, individuals living near an active volcano are more likely to need coverage for volcanic eruptions, while those in tornado-prone regions are more likely to require tornado coverage. Consequently, location plays a significant role in determining natural disaster coverage. Because coverage rules differ widely between policies, it’s worth reading up on what kinds of disasters homeowners insurance actually covers before assuming a specific event is included. Flooding is the most common gap people run into, since standard home policies exclude it and a separate flood insurance policy is usually needed. In some cases, insurance companies may even decline to cover certain natural disasters, which is one reason it helps to compare the top homeowners insurance companies when shopping for a policy.