The world is in a state of change. From devastating winds to blistering heats, nature seems to be taking its wrath out on countries far and wide. As these storms become stronger and more severe, they are wreaking more havoc than was ever thought possible; this is bad news for homeowners in America.
Homeowners insurance is supposed to protect people financially after natural disasters. Unfortunately, as these events pick up in speed and strength, coverage is becoming untenable; from tornados in the midwest to flood in the southeast, people all across the U.S. are struggling to stay above board financially.
Extra Coverage For Extra Damage
FICO recommends that your credit utilization ratio not be higher than 30% of your original credit limit; when facing water damage from heavy rains or regional flooding, it can be hard to resist maxing out your credit cards to 100% utilization to fix the situation. This is a common problem that many Americans face because their basic homeowners insurance doesn’t cover large-scale events that can cause damage, such as hurricanes, floods, and earthquakes. It’s extremely important that you pore over sample policies before agreeing and committing to one; otherwise, you’ll find yourself paying high premiums for insurance that doesn’t protect you when the time comes.
Although it will be an additional cost, it is possible — and highly recommended — to include add-on insurance policies. Let’s take a look.
- Flood Insurance: Many states are in the U.S. are extremely susceptible to flooding. In fact, FEMA states that floods are the most frequently occurring natural disaster in the entire country. Since the damage caused by flooding can range from lost items to mold spreading throughout the home and even the crumbling of your foundation, it’s wise to get additional flood insurance — especially if you live on the coast or in a low-lying region. Although 98% of homes experience basement water damage at some point, the damage (and costs) associated with flooding is unparalleled.
- Earthquake Insurance: Earthquakes can completely demolish homes if they’re strong enough. Rather than worrying about paying the cost to rebuild or restore your home, this add-on insurance can protect you even if you don’t live in an area that experiences earthquakes. The unpredictable nature of this even makes the extra protection a must.
- Region-Specific Insurance: Nowhere in this nation is completely safe from Mother Nature. All regions have weather patterns and storms that are more common than others, and the only way to truly ensure you’re protected from them is to purchase additional insurance.
If you live in a flood-, earthquake-, or tornado-prone area, it’s well worth the extra cost; the price of a monthly premium will almost always be less than the cost to rebuild your entire home. If you neglect insurance that covers the extreme power of nature, you may find yourself in debt and unhappy.