7 Types of Unforeseen Disasters Protected by Insurance

If something bad happens, having the right protection can save your life. Most people understand the basic types of security, such as fire, theft, and car accidents. Insurance, on the other hand, can cover a variety of disasters that you might not immediately think of. Understanding these lesser-known insurance coverages can help ensure your safety. We discuss seven catastrophes that your insurance may cover, but you may not be aware of.

1. Volcanic eruption

Volcanic disasters are horrific events that can cause enormous losses of people and property. While this may not happen often, people who live near volcanoes are still at risk. Many mainstream homeowners insurance policies cover volcanic eruptions. Typically, this coverage covers lava flows, dust, and volcanic ash damage. But it’s important to make sure this covers additional living costs or if you need separate insurance.

2. Sinkholes

A sinkhole is another natural disaster that can occur quickly and cause major damage. This happens when the ground gives way due to weathering, typically due to water breaking down limestone or other similar rocks. If you live in a state like Florida, where sinkholes are common, you can usually add sinkhole coverage to your home insurance policy. This addition could provide peace of mind to people in areas at risk of this disaster.

3. Terrorism

Acts of terrorism are a sad fact of modern life that can occur suddenly. Terrorist acts can cause extensive damage to people and property. Most commercial property insurance policies cover acts of terrorism as part of their basic terms and conditions. For homeowners, on the other hand, you may want to review your policy or even purchase a separate “rider” to ensure you are covered for losses caused by terrorist activity.

4. Mold

Mold is dangerous in the home and easy to ignore. It usually grows as a result of water damage that has not been repaired properly. Normally insurance does not cover mold damage, but sometimes it does. For instance, the insurance provider will pay for the repairs if mold develops as a result of a covered peril, like water damage from a burst pipe. It is important to treat water damage immediately and check if your policy covers mold.

5. Cyber Attacks

As we have entered the digital age, cyber-attacks are becoming more common, especially against businesses. Cyber attack insurance is available that covers a wide range of areas, from theft and data breaches to extortion. People who own their homes can also get this coverage if their personal information is stolen. To protect your digital assets, it’s a good idea to ask your insurance company if there is a way to cover cyber attacks.

6. Identity theft

Identity theft is a crime that is becoming increasingly common. It can hurt your finances in the long run. Many insurance companies cover identity theft as part of their homeowners or renters coverage plans. In most cases, this coverage will help cover the costs of repairing your credit history and restoring your identity. With so much happening online these days, getting identity theft insurance can save you a lot of time and money if something bad happens.

7. UFO Damage

Although it may seem impossible, some insurance plans cover losses caused by “UFOs” or unexplained events. This type of reporting is more for entertainment and business purposes, but it does happen. That is why it is important to read your insurance contract carefully; you may find surprising things in there.


Buying insurance is all about being prepared for the worst-case scenario. The disasters discussed in this article show that there are many types of protection available, not just against fire and flood. Understanding these less common coverages can help you figure out what kind of coverage you need and make sure you’re covered for any situation, no matter how strange it may seem. It is important to read your insurance plan carefully and speak with an insurance agent to fully understand its coverage. Taking this proactive step can help you get out of financial trouble in any disaster.


1. What does volcanic eruption insurance cover?

Insurance against volcanic eruptions usually covers damage caused by ash, dust, and lava flows. However, it is important to ensure that your policy covers fires or explosions caused by volcanic activity as these may require additional cover.

2. Is there insurance that covers sinkholes?

Yes, in places like Florida, where sinkholes are common, you can usually add special sinkhole coverage to your home policy. This coverage is important because some standard plans may not cover land subsidence as standard.

3. Does terrorism insurance cover business and household items?

Terrorism insurance is usually part of a business plan. Homeowners may want to double-check their policies or consider hiring a separate rider to ensure they can cover losses caused by terrorists.

4. What should I do to prevent mold from making my home uninsurable?

Controlling the humidity in your home is important to prevent mold. This means that leaks must be repaired immediately, good air circulation must be ensured and a dehumidifier must be used in damp areas. Your insurance may cover the cost of cleaning up mold caused by a covered event, such as a burst water pipe and leak.

5. What types of damage does insurance cover against cyber attacks?

Cyber attack insurance can cover many things, such as data breaches, loss of private data, and the costs of retrieving the data and paying attorney fees. For companies, this may also include the costs of having to close.

6. Even if I have identity theft insurance, what should I do if my name is stolen?

Notify your insurance company immediately of the theft. They can tell you exactly what to do, which usually involves calling the credit bureaus, closing any compromised accounts, and reporting the incident to the police. Your insurance may cover costs such as legal fees and lost wages needed to restore your status.

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