Earthquakes, floods and other catastrophic events are more likely in some places than others. Still, catastrophic events can happen anywhere. In seconds, a calamitous event can leave you financially ruined. After such an emergency, you may be shocked to realize that your standard homeowner’s insurance doesn’t cover disasters such as floods and earthquakes. By that time, it’s too late to get insurance to cover the damages.

What’s In Your Standard Coverage?
Each homeowner policy is custom-fit to meet your home’s needs. Most insurance policies cover damages to permanent structures on your property and personal belongings, and losses due to theft. Some policies include liability protection and other coverage. Depending on your location and risk needs, your provider may cover some natural disasters. Each policy is different, though, so you’ll want to check your policy to see what is covered and what’s not. Damages caused by the following are usually included in a standard homeowner policy:

• Fire
• Hail and ice
• Broken pipes and plumbing
• Wind
• Lightening

What Is Disaster Insurance?
Disaster insurance is coverage that protects you from catastrophic events such as earthquakes and floods. It isn’t blanket coverage, however. It’s specialized insurance that only covers floods, earthquakes or other specific calamities. Coverage on these policies is customized to meet the needs of the insured.

High-risk Areas
It’s important to consider your home’s risk factors when determining your need for disaster coverage. Is your house below a flood plain, built directly over a fault line, on the beach or in other high-risk areas? Chances are, if you live in an area of high risk for a certain natural disaster, your homeowner’s insurance won’t cover it. If this is the case, disaster insurance may be a wise investment or even a requirement from your lender.

Lower-risk Areas
Even if you’re not in a high-risk area, it may be in your best interest to obtain disaster insurance coverage. Your home is a large investment. Leaving it uninsured, hoping for the best, could leave you at a huge financial loss.

What Are the Limitations?
Before you sign up for disaster insurance, find out all the aspects and limitations of the coverage. Many factors go into the price of disaster insurance. These are some questions you should answer and consider before signing up:

• What are the premiums?
• How big is the deductable?
• What does it cover?
• How much does it cover?
• Is this enough coverage?
• Are there specific types of emergencies or conditions in which it doesn’t apply?
• Is there an overlap or gap in coverage between my standard and disaster policies?

Should I Get Disaster Insurance?
After looking at the price and the conditions, you may be tempted to not go with a disaster policy and take your chances that disaster will pass you by. If you aren’t sure whether to invest in disaster insurance, you may want to discuss your options with your agent, a financial advisor or other trusted individuals. If you are already having financial trouble, or your home isn’t worth as much as you owe on it, you may not want to spend the extra money to protect your house.

Who Provides Disaster Insurance?
You can find companies that specialize in disaster insurance policies. The National Flood Insurance Program offers federal flood insurance coverage. If you live in California, you can purchase earthquake insurance through the California Earthquake Authority pool. Most other states have earthquake insurance coverage through your homeowner insurance broker.