By Minjune Kim
If your home is located in a designated flood-risk area, then you should ensure you take out a good home insurance policy which will leave you fully covered should you be unlucky enough to find a river running through your living room.
With earthquakes rocking countries on the other side of the globe, Americans need to keep in mind that the natural disaster can affect them as well.According to the Insurance Information Institute (III), 39 states have experienced earthquakes since 1900, and all 50 states have witnessed damage from the natural disaster. The last major earthquake the lower 48 experienced was a 6.7 magnitude shakeup that occurred in 1994 in Northridge, California.
Homeowners need to realize that their standard home insurance policies do not cover damages from earthquakes. The California Department of Insurance notes that many people in the state may opt to get earthquake home insurance in order to reduce the cost of repairs associated with the natural disaster.
People who live on flood plains in the country are charged on average £345 more for their home insurance policy than residents in similar property elsewhere in the UK.A spokesman for the General Consumer Council, which compiled the report, said: "People can't afford to take out household insurance even though they know they are more vulnerable going forward to flooding."
Make sure you read your home insurer’s policy documents carefully and watch out for any exclusions. Read the terms and conditions for any additional benefits, such as an emergency payout to cover temporary accommodation and emergency supplies if your home has to be evacuated. Also, don’t forget to check the small print for any exclusions which could invalidate any claim and cost you more money.