Posts Tagged ‘disaster’
Potential disaster sounds dramatic, but it’s an unfortunate fact that some regions are more prone to certain types of natural disasters than others. While a property might look great today, you should know the types of things that might happen tomorrow before you buy. What do natural disasters have to do with buying a new home?
Some regions are more prone to natural disasters.
Put simply, some regions are more prone to natural disasters than others. A big section of the Midwest is commonly called “Tornado Alley” due to the high proportion of tornadoes that occur there compared to the rest of the country. Southern coastal regions are vulnerable to hurricanes. The southwest, particularly California, experiences a loss of property due to wildfires every year.
If you’re buying in these regions, you should know what to expect before you buy. The FEMA website (www.fema.gov) has valuable resources that can help you determine whether your new home is located in an area prone to natural disasters.
Insurance policies might not cover ‘acts of god.’
Some homeowners insurance policies have a tricky little loophole; the ‘act of god.’ While many policies don’t mention this clause by name, it’s typically there in the fine print somewhere. The ‘act of god’ clause means that if an act could not have been reasonably prevented, the insurance company may not be obligated to pay for the damage. This means that natural disasters such as tornadoes, floods, hurricanes or earthquakes might not be covered under your insurance policy.
You may need additional insurance policies or addendums.
If you’re buying in an area prone to natural disasters, you’ll want to make sure you’re covered. Talk to your insurance agent about natural disasters. You may be able to buy an addendum to your insurance policy, or a separate policy, to cover disasters such as flooding, tornadoes or hurricanes. This insurance typically comes at a higher cost in areas prone to these disasters, so know what you’re getting into before you buy.