How to Protect Your Savings From a Natural Disaster

By  //  May 4, 2023

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A natural disaster can be a devastating event in multiple ways. After such an occurrence, you may find your home, belongings, and even your car damaged beyond repair. 

It may be challenging to know what you should do in moments like these. You’ve likely spent years of your life putting money away in the event of an emergency. However, when faced with draining your savings to replace damaged items and repair your belongings, the thought can be devastating. 

Even though you’ve saved that money for just such an occasion, it somehow feels horrible when the time comes to spend it. Rather than draining your savings, there are ways you can protect it from natural disasters. 

Getting the right insurance, such as comprehensive coverage to protect your vehicle and flood damage to cover your home, can help you avoid draining your savings and keeping that money in your bank account. 

The Right Auto Insurance Can Protect Your Vehicle 

While there are many types of auto insurance coverage, some offer you better protection than others. It’s important to note two of the main options most providers will offer — collision and comprehensive. 

Collision coverage offers you coverage for exactly what its name implies — a collision. If you are in an auto accident, your provider will cover the damages after you’ve met your deductible.

This doesn’t offer much support in terms of natural disasters, however. That is where comprehensive coverage comes in. Rather than only covering you for accidents, comprehensive coverage protects you from any instance other than a collision.

These instances could include events such as hurricanes, tornadoes, fires, or even explosions. Even instances such as a tree branch falling on your vehicle after a heavy storm can be covered by comprehensive coverage. 

If you have comprehensive coverage for your vehicle, you can be sure your insurance company will pay for the damages incurred by a natural disaster. While you may still have to meet your deductible, you won’t find yourself draining your savings account to purchase a new vehicle with this coverage. 

Specialized Coverage Can Cover Your Home and Belongings

Your home insurance policy will likely cover some forms of natural disasters. Instances such as wind storms, rain storms, fire, heavy snow, tornadoes, and wildfires are often covered under standard home insurance.

However, it’s essential to check with your provider before you purchase your policy to know for certain what natural disasters are covered. Some areas which are more prone to disasters may not have the same coverage as those with lower risk. For example, if you live in an area prone to wildfires, you may not have that coverage included in your regular policy.

Once you’ve determined what your coverage includes, you can begin looking into more specialized coverage. These add-ons to your policy will help protect your home and belongings in the event of a natural disaster that is not already covered under your standard home insurance policy. 

Flood Insurance

Depending on your location, you may determine specific coverage add-ons are more critical than others. Flood damage is a popular coverage add-on that is not typically included in the standard home insurance coverage. 

Since many locations across the country are prone to flooding, this specialized policy is excellent to have in case a flood occurs. Floods can be extremely devastating and cause massive destruction. 

With a flood insurance policy add-on, if a flood damages your home and belongings, you will receive payment from your provider rather than draining your savings account to cover damages and replacement costs.

Earthquake and Sinkhole Insurance

Earthquake and sinkhole coverage is also a popular add-on, especially if you live in an area prone to these disasters. Earthquakes and sinkholes can cause a lot of damage, both to your home and your belongings.

Most standard home insurance policies won’t provide coverage for these occurrences, so it’s essential to purchase a specialized policy to add on. This prevents you from needing to spend your own money to replace and repair your belongings in the event of a disaster. 

Keeping Yourself and Your Savings Safe From Natural Disaster

Natural disasters are unavoidable and devastating. They can cause unimaginable loss and damage. In the event of a natural disaster, the results may be extreme destruction to your home, your belongings, and your vehicle. 

Even if you’ve spent years of your life setting money aside and saving for just such an event, it can be challenging to drain your bank accounts to cover these extreme losses. Rather than paying for the damages out of pocket, having the right insurance policies can offer you coverage if you’ve experienced a natural disaster.

Though you may still have to pay some deductibles, the money spent won’t be nearly as much as it would be if you were forced to pay the entire sum out of pocket. Insurance policies such as comprehensive, flood, earthquake, and sinkhole coverage can help you pay for damages without draining your savings.  

About Author:

Alexandra Arcand writes and researches for the auto insurance comparison site, She is an insurance expert who enjoys sharing her policy knowledge with others.