If you live in a region that’s prone to natural disasters, you may need to pay more for additional insurance to protect your home, whether you rent or own. The typical insurance policy does not cover earthquakes or related shifts; nor does it cover flooding due to storms.
Earthquake insurance covers damage to your property, loss of use of your residence, and clean-up costs. As a bonus, earthquake insurance typically covers sinkholes, if one happens to open up on your property. It doesn’t cover damage to your home itself. You can probably add earthquake insurance to your current policy, but you can also buy a separate policy for earthquakes. Your cost will depend on your location’s risk of earthquakes and how much coverage you want, but you’ll pay a minimum of $5 per month.
Meanwhile, some renters or homeowners insurance policies cover water damage from pipe and sewer backup, but no standard policy covers damage from rain and natural flooding. Most flood insurance policies come from the federal government’s National Flood Insurance Program (NFIP), which says that just 3 inches of water in a 1,000-square-foot, one-story dwelling could cause more than $11,000 in damage. You can get coverage for your belongings, including appliances, carpeting, and items of value, and/or building coverage, if you own your home. Your annual cost will depend on your area’s flood risk, but providing an elevation certificate for your address may help lower your cost. The NFIP’s FloodSmart.gov website says coverage for contents starts at only $99 per year, while coverage for a building and its contents starts at $325 per year.