If you live in an area susceptible to extreme weather conditions, you will incur higher home insurance premiums. An increased home insurance quote because of where you live initially feels unfair, but your property is at higher risk of damage in these locations. When disaster strikes and you need it the most, your insurance is invaluable.
Undervaluing your property for cheaper premium is a risky and unwise move. If you fall victim to a catastrophe, then you're only selling yourself short financially, and may not receive the coverage you need to get back on your feet.
Below, we will explore some of the climate factors your home insurance policy can be affected by and how you can take steps to reduce your premiums.
Natural Disasters
Natural disasters and severe weather events are unavoidable; they can ruin your property and its contents in a matter of minutes. Having home insurance that covers these occurrences may be the difference between you affording to repair the damage or becoming homeless as a consequence.
Bush Fire
Your home insurance generally covers all types of fires, including bush fires. Most home insurance providers treat bushfire claims in the same manner as any other fire. Companies that specialize in areas prone to these events often have separate clauses. The level of coverage will depend on the value of your home, the amount of damage sustained to the property and your belongings, and more.
For optimal coverage in these situations, it's best to take out content, property, and car insurance.
Flooding
This typically takes people by surprise, but your average home insurance does not cover you for all types of flooding. Under a normal policy, you will be covered for some instances if they are sudden and an internal issue. Generally speaking, any damage and loss caused by flooding due to natural occurrences and extreme weather conditions will not be covered.
If you live in a flood zone from a local river or lake, or live in a location that has heavy rainy seasons, then you'll need to tag on a flood insurance policy to your home insurance.
Most mortgage lenders don't require you to take out this type of policy. More often than not, homeowners are unaware that they're essentially uninsured for something that can be disastrous.
Hurricanes
In most states, your standard homeowners' insurance will cover damages caused by high wind, such as hurricanes.
However, if you live in a high-risk zone, then it's advised that you take out additional windstorm insurance to cover the costs of a complete rebuild or relocate if necessary. Most companies catering to such states will offer this as an add-on to your current policy.
Earthquakes
Again, another unwelcome surprise to many homeowners is the lack of coverage they'll receive from the average home insurance policy if they are hit and affected by an earthquake.
Earth movement that causes damage to your property structure and personal property are generally excluded. This is another area in which your premium will be bumped up if you choose to add on earthquake-specific coverage to your policy.
How to Reduce My Premiums
The simplest answer to this is if you live in a high-risk zone move, but that's not a realistic answer. Instead, be smart and ensure your home insurance covers every eventuality that your property could fall victim to. Taking steps to reduce damage to your property will bring down your premiums.
Use a broker to compare companies and policies. A broker can customize plans and create one that fits what you want and need from your policy for the best price.
How to File a Successful Claim
It's always thought that the faster you act, the better the outcome. However, when a natural disaster like those mentioned above occurs, filing a claim is not always at the forefront of your mind.
A natural disaster claim can take a long time to close due to the large volume of claimants at the same time. Therefore, it's crucial that you take photographs and document the damage so that your insurer can see what occurred and when.
Insurers will send out field inspectors to your property to document your loss. It's important that you meet with them and allow them to do so in a timely fashion before they move onto the next area, as they have potentially hundreds or thousands of homes to visit.
Another important note to make is discouraging volunteers from clearing away the debris. Volunteers have good intentions; however, they may not understand that if they clear away the contents of your home, they are then making it difficult to accurately value the loss.
Final Thoughts
Climate change is causing more frequent extreme weather conditions. Therefore, it's crucial that you fully insure your property for any eventuality your geolocation could throw at you. Many people are unaware of what their policy covers, so take a closer look and don't assume.
