Insurance is defined as a contract between an insurance company and an individual in which a policy holder receives financial reimbursement against losses covered by the policy. We all know this but where we often make mistakes is in our appreciation of the phrase “losses covered.”
An Insurance Plan for any Contingency
A lot of people think that if they have homeowners insurance, they will be reimbursed for any damage to their homes. This is not so. A standard homeowner’s insurance policy covers compensation for specifically defined losses and the homeowner is not protected from any loss from other causes. The covered losses can be increased by having additional coverage added to the policy, at an extra cost of course. It’s important to know the dangers you are exposed to and to sign up for an insurance plan that will protect you against them.
If you want to contact insurance companies or agents to help you to examine or increase your insurance coverage, the information on companies and experts in your area can be found via a major search engine online.
From an overflowing lake to a river is spate, a cloudburst, a broken dam or a hurricane, there are many causes for flooding to occur. There is no part of the country that is immune to one or more of these. A broken water pipe or sewer can also result in a house getting filled with water. The damage is not only to the items in the house – the structure itself can often be compromised and the damage could require expensive repairs or, in the worst case, for the home to be irreparable and unsafe to live in, resulting in it having to be demolished.
Fires can be caused by accidents like a carelessly tossed match, an electrical short circuit or by nature in the form of wildfires. Fire is one of the leading causes of property loss and damage.
Hurricanes, tornados, and typhoons can be deadly as Hurricane Sandy proved. Even regions with no history of these types of disasters occurring can have them happen at any time. And while people who live in tornado alley or other areas where strong destructive winds are common many take precautions to make their homes storm resistant, there is no way to completely secure a house from partial or complete destruction when hit by a really powerful blast of wind.
There are many earthquake prone regions and homeowners in these places usually add an earthquake rider to their insurance policies to protect themselves from loss when one occurs. But earthquakes can happen anywhere and they happen with little or no warning so there is no time to prepare. If there is any history of earthquakes in the region, you need to obtain earthquake insurance because the damage that a strong quake can do to even the most well-built of structures is immense and destructive.
5.Landslides and Avalanches
Those living in the hills are always in danger of having their home destroy by an avalanche or landslide. A sudden heavy snow or torrential rain can cause the snow and mud on a mountain side to break away and come sliding down with tremendous destructive force. These disasters usually result in total property loss.
There are not many volcanoes in this country, but there are enough to do extensive damage. Mount Saint Helens was not just a one off occurrence or a rare event that America will have to sustain. It can happen again with any volcano, no matter how long it has been dormant. And once the eruption happens the lava that flows from the volcano will destroy or consume everything & anything in its path.
7.Snow and Ice
Ice and snow are surprisingly heavy and if enough collect on the roof of a structure the weight is enough to cause the roof to crack or break, putting everything and everyone in the home in danger. Because people, especially in the north of the country, accept icy winters as a natural part of life the dangers that ice and snow have is often taken for granted and the results, in terms of property damage, can be devastating.
8.Damage Caused By An Airplane
The chances of an airplane falling on your house may seem to be so small as to be not worth considering. But if that were so, why is there insurance available to protect you from it? With the amount of traffic in the air growing by the day, the chances of an airplane, or at least part of one, falling from the sky are increasing every day. And even a small object falling from 30,000 feet can cause major damage.
One of the major reasons there is a category for insurance in this regard is what happened in Lockerbie, Scotland on December 21st, 1988. Terrorists from Libya destroyed a Boeing 747 with people all over the world on this plane. It was mainly Americans on this plane and because of politics and cultural differences, a Middle Eastern and mainly Arabic country attacked an American target. This plane held 258 people and they were all killed. This plane landed on homes in Lockerbie, smashing them and vaporizing anyone who was inside. This is not the only time this has happened but this is one of the most dramatic events in terms of a large plane crashing into a neighborhood in all of mankind.
For basic understanding, Libya was never held accountable like they should have been; the terrorists were freed and flown back to Libya in 2009 upsetting the victims and millions of others. Many people say this was so England could gain access to Libyan oil. This terrorist act was authorized by the Libyan dictatorial leader Colonel Muammar Gaddafi which was proven in 2011. Gaddafi never really paid for authorizing this terroristic attack but he died a violent death nonetheless.
Anywhere that explosive material is to be found is a place where explosions can occur. One of the most common causes of explosions that result in major property loss is broken gas mains.
There is no such thing as a place that is safe from riots or some other form of civil unrest. And people, when they come together in a mindless mob, can be the most dangerous of disasters. The violence that a mob perpetrates can be all encompassing and undirected and consume everything in its path, including the homes of those who are in no way involved. And the destruction that human violence can cause is more than anything that nature has to offer.
America just saw this destructive force in Michigan in late 2012 when a job killing union law was finally defeated making Michigan a “Right to Work” state. This was based on the success of Indiana; one of its southern neighbors. Right to Work states across the board have better economies and give more opportunities to their citizens than those who force people to pay union dues which is actually unconstitutional. The unions in Michigan acted violently to anyone in favor of this job creating law and destroyed a tent with old people in it, punched people, and threaten to take people’s lives. This showed the danger that humans can cause humanity and peaceful neighborhoods.
A Poignant Example
To be taken in by the feeling that disasters happen to other people is to bury your head in the sand. No disaster is ever expected or anticipated. A disaster can strike anyone, at any time and from anywhere. It may not be possible or financially viable to have insurance coverage for every possible calamity, but it is essential that you evaluate the risks that your home faces and insure against as many of them as possible. One of the biggest tragedies of Hurricane Sandy is the number of people who did not have the disaster insurance coverage they needed and are now facing tremendous problems in trying to rebuild their lives.