Disastrous events can impact your financial situation if you are not properly insured for a major loss against your home, car or business properties. Some areas have unique insurance programs to help with known risks, such as earthquake insurance in California. However, even if you live in an area where there is not a threat of anything major happening, you should still consider being prepared.
Hurricane Harvey impacted hundreds of thousands of homes in Texas, and as of January 2018, 50 percent of claims on their homeowners' policies were denied because a majority of homeowners didn't have flood insurance. When a home isn't in a flood zone, the coverage is generally less expensive, with policies covering the home and its contents under $400. Compare that to having no coverage and paying out of pocket to remodel or rebuild, and paying for flood insurance becomes much more worthwhile.
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Automobile claims fared better after Hurricane Harvey because flood coverage is available under comprehensive coverage.
Consider how and if your contents are covered, whether in your home or personal vehicle. Have pictures to back up your claim on your pricey possessions. Business owners should also consider business interruption coverage or policies that cover business operations. These types of coverages keep operating expenses covered, like payroll or the lease.