Insurance and Being Prepared for a Natural Disaster

Risks Associated With Natural Disasters

When people consider insurance for a natural disaster it is generally about home and contents insurance, but it is important to consider life, health, and disability insurance as well. Some insurance risks associated with natural disasters include:

  • Underinsurance. Make sure you have the right level of coverage when it comes to home and contents.
  • Life insurance. It is important that you have financial protection in place in case something were to happen to you. Having a life insurance policy that protects you in the event of a natural disaster can help to secure your family’s financial future.
  • Effects on your health. It is important to have health coverage in the event you are injured. Even if you are unable to afford a comprehensive plan you should at least have a plan that covers catastrophic or severe injury or illness.
  • Having no income. If you were injured during the disaster and are unable to work, there is the challenge of rebuilding the damages and taking care of your family. Try to find a disability or life policy that offers income protection either as a standalone policy or an optional extra.

Ways You Can Plan Ahead of a Natural Disaster

It is imperative to be prepared for these situations in order to minimize the risks you and your family could face should disaster strike. There are a few simple things you can do to make sure your family is protected in the event of a natural disaster:

  • Check your health insurance: Know your options if you need medical care away from home. HMO plans may have area limitations to where you can seek medical attention, know what they are. Spend some time now gathering your health history and benefits information. And you’ll save yourself a lot of time and headaches if you’re ever forced to leave your home. Try filling out this Personal Health Information Record document. You can list doctors, medications, allergies and more – for you, your family and your pets, too. You can also attach copies of insurance cards, plan policies, prescriptions and immunization records for the whole family.
  • Check your life insurance: Review your plan to make sure that you are covered against natural disasters. Make sure you have sufficient coverage in place and a clear understanding of what will and will not be covered. Similar to your policy features , it is important to understand that policy exclusions also vary between providers.
  • Prepare for income loss: If you are injured during a natural disaster how will you support yourself and your family? Have disability coverage in place to cover you in the event you are not able to work.
  • Check which disasters your home and contents insurance covers you for: Policies vary, so knowing exactly what you’re covered for will help you avoid nasty surprises.

Prepare for the worst situation

Expect the best, but prepare for the toughest situation Mother Nature can throw at you. Prepare an evacuation box. It should be fireproof, with a lock. And small enough to grab it on the go. In it, store all your important financial documents, including legal papers, bank account information and insurance policies.

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