When Mother Nature has other plans, your house is your first line of defense and your greatest investment. Many homeowners have insurances, but many do not realize their policies can be limited when it comes to events caused by nature have common confusing terms floods, mudslides, fires, etc. At Sierra Mountain Insurance, we feel knowledge is protection. Let’s explore the different types of coverage and see what is really in your policy! What is covered and what is not?

1. Floods: The Most Missed Coverage

Floods are one of the top natural disasters in California for the costs. Most homeowners do not know that standard home insurance does not cover flood damage. Typically floods can be caused by heavy rainfall, rivers overflowing their banks, or melted snow. And flood water damage is not a coverage included in basic policies. The homeowners who discover this after a flood are caught off guard.

You should know that:

Prudently, flood insurance must be purchased separately. And it can be purchased through the National Flood Insurance Program (NFIP) or through private carriers. Even if you are outside of a designated “flood zone,” flash floods can happen any time especially in California given the recent climate pattern changes. Finally flood policies also have a waiting period typically of 30 days, so secure coverage before storm season.

Pro Tip: Talk to your insurance advisor regarding flood mapping updates in your area. Risk zones change over time, changing your exposure and your premium.

 2. Mudslides: The Gray Area in Coverage

Typically mudslides and landslides occur after a heavy rain event or wildfires when the soil is unstable and gives way. The unfortunate thing is that damage caused by earth movement (mudslides, landslides, sinkhole, etc.) is not covered under a standard home insurance policy.

However, here are a few ways to protect your home:

Your Options:

“Difference in Conditions” (DIC) insurance is a type of policy that covers flood, earthquake, or landslide damage.

For high-risk zones, some insurance companies offer combined catastrophe coverage, which also includes mudflow protection.

Homeowners can reinforce their property using land grading, retaining walls and proper drainage to limit exposure.

Pro Tip: After the fire, much of the land around your home becomes unstable, which could lead to an increased risk for a mudslide. Review your coverage immediately after weather events that create such risk.

 3. Wildfires: Covered  But Proceed with Caution

California’s wildfire season is becoming longer and more devastating in its damage. The good news is that most standard homeowners insurance policies do cover fire damage, including wildfires.

The catch is this  as the risk of wildfire escalates, some insurance companies have started limiting coverage, raising premiums, and/or non-renewing properties that are located in high-risk areas.

What You Can Do:

Check your dwelling coverage limit  be sure it is based on the current cost of reconstruction rather than your home’s market value.

Inquire about extended replacement cost protection (generally as much as 125-150% of your home’s insured value).

You may also want to keep a thorough home inventory (including photographs, receipts, and appraisals) for a streamlined process should you ever need to make an insurance claim if something goes wrong.

Pro Tip: You can often reduce that risk (and possibly qualify for discounts in premiums) through fire-resistant roofing, brush clearing, and other attempts to have defensible space.

4. The Costs that are Often Overlooked: Staying Elsewhere after a Natural Disaster

After a natural disaster, your home may be uninhabitable for weeks or months. Additional Living Expenses (ALE) coverage is designed to pay for temporary lodging and related expenses such as meals, but only up to the maximum ALE limit in your policy.

Smart Step:

Be sure your ALE limit is sufficient to allow your family to maintain that lifestyle while being displaced for the longer term. Recovery from a wildfire or flood may take much longer than anticipated, especially the rebuilding process. 5. Review, Update, and Assess Frequently

All types of risks to natural disasters change over time, especially throughout California’s changing climate. The best strategy is proactive planning.

How to Remain Prepared:

Review your policy every year especially if you have done any renovations or added value to your home. Revise the coverage when there is a change in local disaster mapping or construction costs.

Work with independent agents who can shop multiple carriers for the ideal fit of coverage and price.

The Bottom Line

Disasters might be unpredictable, but your coverage doesn’t have to be. Having an understanding of what your homeowners insurance truly provides once nature tests your endurance might be the difference.

At Sierra Mountain Insurance we help Californian homeowners develop custom coverage options that exceed their basic policy protecting your home and your peace of mind. Because when it comes to wildfires, floods, or mudslides “maybe covered” is no longer good enough.