Your home insurance covers you for a specific set of perils; typically 10, 16, or all perils. However, you need to add natural catastrophe insurance to cover earthquake, flood, and landslide perils. No home insurance covers floods and most don’t cover earthquakes or landslides, even with all-perils coverage. You can still protect your home or business from these three perils with natural catastrophe insurance, also known as Nat Cat insurance.
The insurance industry realizes that there is no one size fits all policy. You can choose from various levels of coverage, including:
- Contents only,
- Structural only,
- Contents and structural.
If you rent your home, you would require a contents-only policy. Your landlord would choose a structural policy if they rent an unfurnished home, but a contents and structural policy if they rent a furnished home. Likewise, if you own your home, you would choose contents and structural coverage.
You can reside in any type of abode and obtain cat insurance. This includes mobile homes as long as they use tie-downs to ensure they remain anchored to the ground.
With respect to the flood coverage in the cat insurance, you can obtain it through the government’s National Flood Insurance Program (NFIP) or through the Natural Catastrophe Insurance Program (NCIP). Either option fulfills the flood insurance requirement of a financial lending institution from which you obtained your mortgage.
For more information on Nat Cat insurance or to get a quote on coverage for your home or business, contact United Insurance Services Inc. serving Bluffdale, UT. Let us help you properly insure your home against natural catastrophes.