Hazard Insurance

Source: Tiffany

As many already shall know, hazard insurance covers property damage caused by fire, wind, storms, and other similar events. But coverage for earthquakes and floods, especially, might not be included with your hazard insurance, and you should read your policy carefully and consult your agent. If you have a home, business offices, or property that resides within an area that is particularly susceptible to extreme weather or disasters, then you might need to have a special rider on your insurance policy. Additional riders for tornado damage or hurricane damage are sometimes needed, as well.

An important thing for you to know is that when you look into additional hazard insurance coverage, you may get pitched on mortgage life insurance, which just pays off the lender in the event of your death. While commissioned salesmen try to make this sound like an ingenious piece of protection strategy, it is not specially if the interest rate on the loan is low and you have survivors who may need the mortgage for tax reasons. Instead, increase your regular life insurance coverage so your survivors can invest any proceeds after your death to provide enough money to continue paying the loan.

California is targeted for earthquake coverage, but at least 16 other states are additionally considered at higher than average risk for quakes: Arkansas, Colorado, Idaho, Illinois, Indiana, Kentucky, Massachusetts, Mississippi, Missouri, Nevada, New York, South Carolina, Tennessee, Utah, Washington and Wyoming. Earthquake coverage can be quite expensive, but you need to consider it if: you live near a fault line; your home is more than 50 years old; your home is built on a slope, landfill, or flood plain. In fact, earthquakes can happen almost anywhere in the United States. The U.S. Geological Survey has found that quakes do occur most frequently west of the Rocky Mountains, but at the same time there are 39 states where an earthquake could happen suddenly at any time.�