What disasters does home insurance cover

Natural disasters such as explosions, fires, lightning, hail, windstorms, hurricanes, tornadoes, extreme cold, volcanoes, and theft are typically covered by homeowners insurance policies. Earthquakes, floods, tsunamis, and nuclear disasters are typically not covered by homeowners insurance.

Before a natural disaster strikes, it is critical to understand what is and is not covered by your homeowners insurance policy, as there are several policy types available. Learn more about what is and isn't covered by homeowners insurance, as well as what to do if a natural disaster strikes.

Key natural disaster facts

  • About 385 natural disasters occur worldwide each year, on average. (Statista)
  • Natural disasters kill about 60,000 people worldwide annually. (Our World in Data)
  • Natural disasters cost $74.4 billion in 2020. (Insurance Information Institute)
  • Hurricane Katrina was the costliest natural disaster in U.S. history at over $16 billion. (Statista)
  • Many scientists believe global warming is the greatest threat to humankind. (Live Science)

Know your insurance policy

Homeowners insurance financially protects you against covered damages to your home and personal belongings. In some cases, home insurance can also protect you from financial liability for injuries to others that occur in your home, as well as additional living expenses if you need to relocate temporarily following damage. There are several types of home insurance policies available. There is no policy that covers all natural disasters, and some policies have more restrictions than others.

It is critical to understand what type of policy you have and what natural disasters are covered by your homeowners insurance policy. All policy types can have exclusions, especially if you live in an area prone to certain types of natural disasters, so you should review your policy with your provider to see what is excluded and if you need to purchase additional coverage.

  • HO-1: The most fundamental type of homeowners insurance. When damaged by named perils, such as an explosion, fire, lightning, hail, windstorms, or volcanic eruption, coverage is limited to your home, attached structures, and appliances. Personal belongings are not covered under a HO-1 policy.
  • HO-2: Also known as broad form policies, HO-2 policies cover everything covered by HO-1 policies plus personal belongings. In addition, the policy type typically includes a few named perils, such as ice, snow, or sleet damage and frozen pipes.
  • HO-3: The most common type of home insurance policy, a HO-3 policy covers everything a HO-2 policy does, plus some liability, additional living expenses, and medical payments. HO-3 policies are typically open perils policies, which means that the structure of your home is covered for any type of damage with the exception of exclusions specified by your provider. This type of policy will typically only cover specific perils for your personal belongings.
  • HO-4: An HO-4 is a type of renter's insurance that protects your personal property from named perils and provides some liability coverage. Coverage for additional living expenses may be included in some cases. The named perils typically provide coverage comparable to a HO-2.
  • HO-5: An HO-5 is the most comprehensive homeowners policy and covers everything an HO-3 covers but typically offers higher coverage limits and protects both your home and personal belongings from open perils with some exceptions.
  • An HO-6, also known as condo owners' insurance, covers named perils that damage anything 'from the walls in' inside the unit, as well as some personal liability and additional living expenses coverage.
  • HO-7 policies cover mobile and manufactured homes and are similar to HO-3 policies in that they provide open perils coverage for the structure and named perils coverage for personal belongings.
  • HO-8: An HO-8 policy covers more difficult-to-replace homes, such as an older, architecturally significant home that would cost more to repair or replace than the home's current value. Standard coverage for named perils that damage your home or personal property is included in HO-8s, as is some coverage for additional living expenses and medical payments.

Which disasters are covered by homeowners insurance

Consult your home insurance agent to ensure you are covered in the event of a natural disaster. The type of homeowners, condo, or renters insurance policy you have, as well as the coverage limits you select, are important considerations.

Tornadoes

Tornadoes can damage your home and personal property due to high winds, hail, flying debris, and downed trees. Most home and personal property insurance policies will protect you financially from this type of damage. For example, if wind or hail damage your roof, causing rainwater damage to your home, you should be covered unless your policy specifically excludes these perils. Some tornado-prone areas may require separate deductibles for wind or hail, known as disaster deductibles. Flood damage caused by a tornado is not covered by standard homeowners insurance policies, but it is covered by a separate flood insurance policy.

Hurricanes

Hurricanes, like tornadoes, can cause damage to both the dwelling structure and personal belongings. Hurricane damage caused by wind and hail is usually covered, though if you live near the coast, you may have limited coverage or a separate, higher deductible. Flood damage, once again, is not covered unless you purchase a separate flood insurance policy.

Fire

A standard homeowners insurance policy covers both your dwelling and personal property in the event of a fire. Unless you live in a wildfire-prone area or the fire was intentionally set, there are usually no restrictions other than your policy limits. Damaged materials and belongings are also dismantled and removed. If high-value items such as jewelry and fine arts are not scheduled property, they may have limited or no coverage.

Explosion

It is usually a covered peril if something explodes in or near your home. If your home or personal property is damaged as a result of an accidental explosion, both policies should pay. A riot or civil commotion-related explosion should also be covered.

Lightning

A lightning strike could start a fire, damage your home wiring, or cause a surge that destroys costly electronics. Standard homeowners insurance usually covers your home and personal property, even if lightning strikes a tree and damages your home or belongings. However, the cost of removing the tree may not be covered, so check your homeowners insurance policy.

Volcanoes

Ash, dust, lava flow, and shock waves could all be produced by a volcanic eruption. Damage to the dwelling and personal property is typically covered by homeowners insurance. An explosion or fire that occurs as a result should also be covered. Volcano-caused earth movement, landslides, tremors, mudslides, or earthquakes are typically not covered by homeowners insurance.

Extreme cold

Most standard homeowners insurance policies cover damage to the home and personal belongings caused by extreme cold. If a pipe bursts due to the cold, the pipe itself may not be covered, but the damage caused by it should be. Damage caused by the weight of ice, snow, or sleet, as well as wind-driven freezing rain or snow, is usually covered if it causes damage to your home or personal property. If melting ground snow seeps into the house and causes water damage, it is usually not covered and must be covered by a separate flood insurance policy.

Which disasters are not covered by homeowners insurance

While most natural disasters are covered by homeowners insurance, there are a few exceptions.

Floods

Flood coverage is not included in any type of homeowners insurance policy. Climate change has increased the frequency of devastating flood events across the country, particularly in recent years.

Flood insurance can be purchased separately from an insurance agent or directly from the National Flood Insurance Program (NFIP). The average flood claim paid by the NFIP between 2010 and 2018 was $45,925. The cost of flood insurance varies depending on your state and where your home is located on the flood risk map. The cost of coverage can range from $600 to more than $1,200 per year.

Earthquakes

Though earthquakes are not covered by a standard homeowners insurance policy, most carriers offer an endorsement that can be added to the policy for a fee. Almost half of the United States is vulnerable to earthquake damage.

The average annual cost of earthquake insurance is between $100 and $300. If you cannot afford to replace your belongings or rebuild your home if it is damaged, you should talk to your insurance agent about earthquake insurance.

Tsunami

A tsunami is a massive wave that can travel hundreds of miles inland and is typically caused by earthquakes or underwater volcanic eruptions. Though homeowners insurance does not cover these destructive waves, you can purchase flood insurance, which will cover the damage caused by tsunami waves.

Nuclear event

A nuclear event or explosion could cause minor damage to your home or completely destroy it. Though your homeowners insurance will not cover a nuclear event, plants are required to carry liability insurance to protect the public in the event that someone is injured or property is damaged.

What to do if you have experienced a natural disaster

A natural disaster can be devastating, especially if you have suffered catastrophic property or personal loss. Have an emergency kit packed and ready to use to avoid damage and stay safe during a natural disaster. Depending on where you live, you can use sandbags and other building materials such as plywood to keep water out and high winds or debris from breaking windows or doors.

It's also a good idea to check with your home insurance company to see what kind of coverage you have to ensure you're covered for natural disaster damage. If damage occurs as a result of a natural disaster, assess the damage, file a claim as soon as possible, keep track of expenses, and make temporary repairs as needed while waiting for the claims adjuster. Following a natural disaster, there are usually community resources available, such as government programs and non-profits.