Disaster Insurance

Disaster Insurance.

You could be faced with financially ruins if you needed but didn't have disaster insurance.

Having Disaster Insurance Coverage to soften the effects of a loss is not only a smart decision but is also a requirement by lending institutions like Banks and Credit Union. Insurance providers form the backbone of modern civilization. You wouldn't be able to get a mortgage to buy a house or a car or in some cases a business loan without insurance.

Homeowner Insurance:

Your homeowners Insurance will cover a multitude of things that can happen to your home including fire, burglary etc. Both the structure and contents are covered. Since there are as many if not more losses for which you also will not have coverage it is important to take the time to read your policy and understand what is excluded.

Renters Insurance:

I am willing to bet you that if you ask the people you know who are renting if they have Renters Insurance, most of them will answer that they don't.

Renters insurance is probably the "best buy for the buck" as far as insurance is concerned. For an annual payment that's probably less than a weeks' salary most renters can buy renters Insurance and enjoy the peace of mind knowing that their furniture, clothes and other personal effects are covered.

Let me encourage you wholeheartedly to buy some renters insurance and if you are a homeowner renting out a part of your house you should encourage your tenant to buy renters insurance.

Find out from your attorney if you can insist on renters insurance as a condition of leasing or renting out your house or apartment. It's that important.

Flood Insurance for Homeowners:

Floods are caused from rising water and should not be confused with water damage caused by roof leaks or wind driven rain. Remember also that the President does not have to declare a disaster for you to claim payment from your flood policy.

Floods are not covered by your homeowners' policy and so if you want flood coverage you will have to purchase a flood insurance policy.

When you are shopping for a house it's a good idea to do some research on the area in which you plan to buy your house to see if it is in a flood zone.

Though you do not have to be in a flood zone to buy flood insurance, the cost will be much higher if you are in a floodplain otherwise called "Flood Hazard Area" (SFHA).

Your Insurance agent can check the flood map to see if your area is in a high risk, medium risk or low risk area.

The maximum amount of coverage that you can buy for your house of $250,000 and contents of $100,000. This will be different if it's a two family house. Will this be enough to rebuild your house if it got swept away in a flood? Take this in account as you shop for your dream home.

Flood Insurance for Renters:

Just as renters insurance will provide peace of mind for you and your family you should be aware that it does not cover floods and your landlords' flood policy will not cover your stuff either.

Take my advice and also purchase flood insurance, its inexpensive and will be one of your best buys. The maximum you will be able to purchase is $100,000 and will afford you peace of mind knowing that there will be financial help for you if you had a loss...

Hurricanes Disaster Insurance:

Most Insurance companies if not all will include a very large deductible into your homeowners' policy for hurricane damages. This is usually a percentage of the amount of your insurance coverage on your house and ranges from 3% to 7%.

Here is an example: Let's say your house is insured for $200,000. Your deductible is 5% ($10,000), Hurricane damages to your house is $50,000. You will only be paid $40,000.

Are you able to come up with a deductible of $10,000 to repair your house if it was damaged? What if the damages were less than your deductible? You would not be paid anything by your Insurance Company. Your disaster insurance emergency fund should be an amount at least equal to your deductible but certainly recommended to be more.

Earthquake Insurance:

Are you living in an area that's known to have earthquakes? If so then your disaster insurance plans should include Earthquake Insurance. Be aware that your Homeowners Policy will not cover you for an earthquake.

Many Insurance companies offer special "Earthquake Insurance" and though coverage is not mandatory unless required by your mortgage holder, the deductible can go as high as 15% and sometimes more. This is important to know when shopping for a house as you put your house maintenance budget together.

Tornado Insurance:

This is the most devastating of all natural disasters. Tornadoes can rip through a neighborhood like a shredder leaving nothing but unrecognizable rubble behind. Unfortunately there is no "Tornado Insurance" available. You will have to depend on your homeowners insurance to cover you.

I have spent some time on flood, hurricane and earthquake Insurance because they are the most common natural disasters. However this is by no means meant to ignore the other many natural disasters to which you might be exposed if you are living in such areas.

Speak to your Insurance company or agent about the extent to which you are covered and if there is a mandatory deductible that's being applied to a claim if there was damage to your house.

Having spent some time in as an insurance agent and also as a real estate agent I would caution my clients on the importance of adequate insurance. As a real estate agent I would remind them as much as I am reminding you that before you buy "Think about how easy or difficult it would be to sell your house if it's in an area known for a special kind of disaster."

Having the right equiptment at hand also will go a long way in your preparations

Article Source: http://EzineArticles.com/7505531

Disaster, Hope, and Charity - The Santa Clara-Virgin River Flood

A thunderous crash could be heard in the distance as a home collapsed and crumbled into the rushing waters below. Several people were standing at the edge of a hilltop in Santa Clara, Utah, watching their valley being destroyed before their very eyes. The torrent had eaten away the dirt of the riverbank and the foundation of the house. With no support, the home fell into the rapidly flowing river and was swept away downstream.

The Santa Clara/Virgin River flood in St. George, Utah, in 2005 was a complete disaster. Standing on the hill and watching the destruction below was an emotional experience for everyone. The trees and shrubs that once lined the small five-foot-wide river were now gone, uprooted and swept away by the violent and turbulent flow of water. What took years for nature to create, nature was able to destroy within seconds. Who would ever have guessed that the creek would swell to such width, viciously cutting away at the landscape?

The once tranquil stream, which could easily be crossed on foot or in a car, was now as wide as the length of a football field, and it was taking everything within its path. The speed of the river had once been five cubic feet per second, and now it was more than 6,500 cubic feet per second. In three days time, it had dug into the earth's surface, carving away at the banks and creating ridges as high as thirty to forty feet. The torrent was digging at the earth at ten feet per hour like a plow and sweeping the red dirt and trees down the river into Arizona and Nevada. In fact, a man found his car thirty miles downstream from his home. It had crossed the border into Nevada.

Men worked feverishly to help the residents remove what they could from the homes that were threatened by the river, but there were those who escaped with only the clothes on their backs. About two hundred homes were damaged and twenty-five were completely destroyed. The experience of charity and compassion by the people was incredible. There was no prejudice of religion, race, culture, or status, just unconditional love and concern for everyone. Homes, clothes, and food were instantly found for the homeless.

Why was the flooding so bad that year? Six weeks of rain following a seven-year drought was the main reason. Built-up debris blocked the river channel and the only direction to go was outward, toward farmland and homes. Not only that, the heavy snow in the mountains seemed to be a blessing to this desert land, but the unusually warm January melted the snow too fast. With the constant rain during that month, the saturated ground couldn't hold any more. The estimated damage was nearly two hundred million dollars.

Lost homes can be replaced, but the sad thing about this flood was the loss of irreplaceable and precious treasures that had no value to anyone but the owner, such as photos and memories of the past. Do you believe in miracles? Stories of hope always touch people, including me.

An elderly widow grabbed what she could with the help of her neighbors but wasn't able to get everything. She lost her husband's and her own Book of Remembrance, which had pictures of their family, their ancestors, and their biographies. All those memories were swept away in the flood. The following day after her home was gone, a knock came at the door where she was staying. A man was standing before her with the book in his hand. He said that he found it washed up on a tree stump near his home. Needless to say, she wept for joy. But that's not all. The following day, her husband's book was found, also.

The kindness of others was overwhelming for this little valley. Fundraisers were put together and schools collected money for the homeless. To me, this was a story of hope and love, a story of charity. As I included all this information in my novel, Anasazi Intrigue, I relived this disaster once again. You see... I'm from Washington County, St. George, Utah. This was my valley. This was my home. These were my people!

Article Source: http://EzineArticles.com/3892234

Business Disaster Recovery - Flood Protection

Winter's snow can so often bring on major flooding when it thaws too quickly. The snow melts, waters rise, drains become blocked and hillsides become too saturated and slide. These simple changes can cause major disasters for small businesses trying to keep things moving smoothly forward.

Flooding and other disasters can cost business owners money in three ways: 
1. Cost of repairing damages to the business 
2. Cost of replacing products 
3. Lost of revenue

The startling truth is that as many as 25% of small business do not reopen after a disaster. That is why it is so important for small business owners to layout a strategic disaster plan that includes emergency recovery steps in the event of a flood.

All business owners should consider purchasing flood insurance for their business, regardless of where the business is located or its size. Flood insurance policies will not only cover a natural disaster but also broken building pipes or leaking roofs. The cost up-front could save you a lot of money down the road should water damage destroy the business.

Once you have that major protection from flood damage in your disaster plan, take the necessary precautions to ensure you never have to call upon that plan. Below are some suggestions as you develop your disaster management plan.

o Put together a list of important emergency contacts and their information and place it in TWO easy to find location. Important contacts should include landlord contact information, building maintenance numbers, utility company numbers, medical and fire service numbers, a business disaster recovery service number and any technical support staff numbers that may be needed. 
o Make photocopies of any important documents related to your business, the building or your employees and store them off-site. The same should be done for important computer files. 
o Have a map of the office building and indicate where the electricity shut off system, and water valves are located. Indicate any other key pieces of equipment that may need special care in case of water damage. 
o Store important documents, archives, film, photos and anything else vital to your business in safer storing areas, preferably off the ground on high shelves in waterproof storage containers. 
o Run basic drills with your employees are emergency procedures, including evacuation plans and phone call protocols for getting and receiving information in the event of a flood or other emergency. Also include information on alternate working locations should the office building become off-limits. 
o Put together an emergency supply kit and place it in an area easily accessible by all employees. 
o Plan your landscaping to properly channel water away from the building foundation. Clear away debris from drains periodically throughout the year and keep your eye out for any standing water that may cause long-term problems.

With a proper disaster plan, you may not be able to completely forestall major water damage but you can keep it from ruining your business or your most important assets. Small business owners that take the time to prepare a solid flood disaster plan will be able to spend more time on the items most important with running their business.

Article Source: http://EzineArticles.com/1959055