Steve Dale’s Other World: Insurance for Natural Disasters, What You Need and What You May Not Need
Insurance may not be very sexy or exciting, but it’s increasingly important….More so because of the increasing numbers of hurricanes, floods (not always hurricane related), wildfires and tornadoes. Most all 50 states are prone to some sort of natural disaster. How do you best prepare? Does that preparation include insurance? I spoke with Mark Friedlander of the Insurance Information Institute on my WGN Radio Steve Dale’s Other World Podcast.
This might blow you away: It turns out that regarding hurricanes, wind damage is generally covered under standard homeowner or business policies. Friendlander adds there’s also a hurricane deductible in the 18 most hurricane prone states. This is separate from the property coverage, and Friedlander explains how this works.
Flood insurance would be a separate policy, except for cars – who also require a separate rider – and Friedlander explains how to insure cars for floods, and what that takes.
One problem which we spoke about is the cost of flood insurance in some places. And there are now various other options, which he discusses.
And is this all different if you’re a renter or living in a condominium?
So, you want more insurance or to review what you have….Do you go to an independent broker or a specific company? And why, he says, you should meet annually with your insurance agent to review your coverage.
I ask him how the insurance industry can even fund the plethora of recent disasters.
Friedlander explains misconceptions about FEMA – it’s intended to support emergencies, but not offer complete coverage, just a portion.
We also talk about wildfires. Property coverage supports wildfires.
The California Earthquake Authority in that state is the only way to obtain earthquake insurance.
Most of all, be prepared. Don’t think that natural event – whether wind or rain or fire – won’t happen to you. It happens to someone, many millions – so why not you? Do have an emergency plan.
We also discuss that if you are told to evacuate, you should. But we also I explain that people won’t leave and shouldn’t leave without taking their pets. And sometimes they don’t leave because there is nowhere to evacuate with pets. Have a pet disaster kit, and also plan which hotels/motels maybe pet friendly in advance.