Insure your home against natural and man made disasters

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Intermittent natural hazards lead to disastrous consequences. A genuine example of such a disaster in recent days is the wrought caused by Hurricane Katrina. Frequent happenings of the …. mudslides in California , tornadoes in the mid Atlantic states, blizzards in the Midwest, and hurricanes in Florida have drawn the attention of the Congress for the formulation of a definite insurance policy for the natural disaster.

The post Katrina disaster aid that the federal government had to bear has resulted in tremendous loss for the government. Thus a home insurance policy has been formulated for the natural disasters. Essentially this is a security policy for you to protect your home against the natural hazards.

What are the 8 different natural disasters?

1. Earthquakes
2. Ice Damage
3. Floods
4. Wildfires
5. Tornadoes
6. Hurricanes
7. Hail
8. Publications

Which policy includes the natural disasters?

Normally these natural disasters are not included in the standard homeowners insurance. The all risks policy that gives a wider coverage than that of the named perils policy includes the natural hazards. Whether a policy includes all the five natural disasters depends on the clauses of the policy. Some insurance companies frame special policy to include these natural disasters if they are not included in a particular coverage.

What is an Act of God?

Sometimes the insurance companies use the phrase Acts of God in your agreement in this context. Basically Acts of God is a calamity, for which no one is responsible. It covers an earthquake, a tidal wave, a volcanic eruption, a hurricane or a tornado. However, there has been a raging controversy about the actual components of the “Act of God”. It has been noticed that the insurance companies tend to dodge you when you make any claims.The company tries to confuse you regarding the significance of the phrase in the agreement.They purposefully deny your claim in the long run. Thereby, it is always advisable for you to check out your agreement in detail. And if “Act of God” is written in your agreement, then ask your company to pen down it’s coverage in your agreement. This would avoid further confusions. Nowadays insurance companies however avoid this phrase in the agreement.

What is the meaning of Force Majeure?

Recently the term “Force Majeure” is being used in the insurance industry. Essentially Force Majeure, is a French word that refers to “a superior force”. This is actually an expansion of “Act of God”. This means natural disasters, as well as man made disasters. The increasing man made disasters is affecting normal life to a great extent. The frequent terrorist attack is increasing at an alarming rate. The terrorist attacks of Sept. 11, 2001 is the appropriate example of such incidents. This incident finally led to the enactment of the terrorism insurance. At the end, on November 26, 2002 President Bush signed the Terrorism Risk Insurance Act into law.

Thereby, whichever term is used, this coverage has gained considerable importance in the real estate industry. Experienced and potent people of the insurance industry would always guide you and advise you to sign up with such insurance. Moreover, the effect of hurricane in Florida is not unknown to any of us. The atrocities suffered by the people insists to take up a security policy immediately, even if we are not residing in a hurricane prone zone.