Which Items are Not Covered by Disaster Insurance?

Disaster insurance is important to protect your property and finances from natural disasters, but it’s also important to understand what these plans typically don’t cover. This comprehensive guide covers common items that disaster insurance policies do not cover. It will help you understand the differences and ensure you get the protection you need to feel safe.

Introduction to Disaster Insurance:

Disaster insurance is designed to protect you against losses caused by natural disasters such as storms, earthquakes, floods and forest fires. These plans can save lives by providing policyholders with the resources they need to rebuild and recover, but policyholders must understand the limitations and exceptions to these plans.

Standard Exclusions in Disaster Insurance:

1. Flood

Flood damage is one of the top things that standard homeowners insurance and disaster insurance policies do not cover. Most plans do not cover flood damage unless they specifically say they do. This can be a major problem in places prone to flooding. Homeowners are often required to purchase additional flood insurance from the National Flood Insurance Program (NFIP) or a private insurance company to protect their homes against flooding.

2. Earthquake in Rocks

Many disaster and homeowners insurance plans do not cover earthquakes, just as they do not cover floods. For earthquake-prone areas, separate earthquake policies or additions to existing policies are required. This coverage can help you deal with the enormous costs you may incur if you need to repair or rebuild after an earthquake.

3. Maintenance Issues

The disaster insurance does not cover damage caused by neglect or improper maintenance. For example, if a roof collapses because it is old or has not been maintained, and not because of a covered peril such as a storm, the loss may not be covered. To protect your property in the event of a disaster, it is important to perform regular maintenance and repairs when necessary.

4. Damage Caused Intentionally

Disaster insurance does not cover damage intentionally caused by the owner or other insured persons. This restriction is important to prevent fraud and ensure that the insurance does its job of protecting you if something bad happens.

5. Normal Wear and Tear

All buildings experience some wear and tear over time due to their age and intensive use. Most catastrophic insurance plans will not cover the cost of your home or belongings as they age over time.

Lesser Known Exclusions:

1. Nuclear Accident

Most disaster insurance policies do not cover nuclear accidents, even if they are unlikely to occur. Typically, governments plan to address such risks at the national level.

2. Acts of War and Terrorism

Unfortunately, most disaster insurance plans do not cover losses caused by war or terrorism. People living in high-risk areas or businesses that are particularly vulnerable may need different types of cover.

3. What Does the Government Do?

Catastrophic insurance does not cover material damage as a result of government action, such as taking or destroying property during war.

How You Can Be Sure That You Have Sufficient Coverage:

1. Understand the Risks

Check the likelihood of natural disasters in your area to see what additional coverage you may need. If you live in an area where earthquakes or floods are common, you may want to purchase an additional policy that covers these types of events.

2. Check Your Policy Once a Year

Because risks and circumstances can change over time, it is important to review your insurance coverage annually to ensure it still meets your needs. This is also a good time to discuss any changes in your life with your insurance agent.

3. Consider Taking Out Additional Insurance

If you’re concerned about what your policy won’t cover, talk to your insurance company about other coverage options they may offer. For example, riders or endorsements can add more risk to your coverage.


For good financial planning and risk management, it is important that you know what your disaster insurance does not cover. Understanding these exclusions can help you take steps, if necessary, to improve your coverage and avoid unpleasant shocks when the situation is already difficult. For the best protection for your needs and location, discuss a customized policy with an insurance professional.


1. What should I do if a hazard that threatens your home is not one that regular insurance will cover?

If your home is located in an area prone to certain disasters, such as earthquakes or storms, you will need to purchase additional coverage to protect you against these risks. Discuss your specific needs with an insurance agent and explore your options, such as purchasing flood insurance through the NIV or purchasing a separate earthquake policy.

2. Is there coverage for rare events?

Yes, there are special insurance plans for rare disasters. Some of them provide protection against things like sinkholes, landslides, and even volcanic eruptions. These policies are usually purchased separately, and you will need to consider where you live and the risks involved.

3. How can I be sure my disaster insurance covers everything I need?

To ensure you have sufficient coverage, you should have your policy professionally reviewed regularly so that changes can be made if your situation or the value of your property changes. Additionally, consider conducting a comprehensive assessment of all natural disaster risks in your area and ensuring your insurance coverage matches those risks.

4. How can I best keep track of my property and assets so that I get the right coverage if a disaster strikes?

Make a complete list of everything you own, including photos, descriptions and receipts, if possible. Keep these materials in a safe place, preferably online or in a safe place away from the main office. This evidence is important when filing an insurance claim after an accident.

5. Can I make a claim for losses that I did not directly see, such as lost business income or a power outage?

Most catastrophic insurance plans do not cover consequential damages, such as loss of income or power outages, unless they state that they do. Those who own a business should consider purchasing business interruption insurance, and those who own a home should consider other types of coverage to cover such secondary losses.

Leave a Reply

Your email address will not be published. Required fields are marked *