Our Insurance Comparison Tool allows you to pick the policy that's right for you by comparing every Natural Disaster plan offered by Canada's leading insurance providers. Stuck? Our Frequently Asked Questions can answer questions on this coverage area
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Frequently Asked Questions(click to expand)
What Is Natural Disaster Insurance?
While some people assume that ‘Acts of God’ are not covered by insurance providers, damage caused by natural disaster can, in fact, be covered. Natural Disaster insurance policies can include coverage for earthquakes, hurricanes, tornados, tsunamis, floods, wildfire, blizzards, and snowstorms.
Certain types of unusual or extreme weather are also included in certain insurance policies such as heavy rainfall, hailstorms and ice, fire and smoke damage, windstorms, lightning, damage caused by falling items
Depending on where you live, it can be fairly easy to predict certain kinds of natural disasters – flooding in coastal areas, earthquakes on fault lines, wildfires in woodland areas, etc – however not all disasters can be foreseen, which can make choosing the appropriate coverage difficult.
What Does Natural Disaster Insurance Cover?
- injured persons
- damage to residential or business properties
- damage to movable property
- industrial risks
- loss of earning due to a business interruption
- repair or replacement costs for damaged contents, vehicles or machinery
- travel disruption
- repatriation costs
The effects of severe weather and unforeseen events on companies and individuals are wide-ranging, meaning that if natural disasters are not specifically worded in standard Home, Business, Car or Travel insurance policies, then it’s very important to pay close attention when choosing an appropriate general Disaster insurance policy that covers specific risks.
Disaster Health Insurance (DHI) is a more specific type of coverage that can be taken out against the effects of contagious risks such as plague, cholera and H1N1, also known as Swine flu. DHI is particularly recommended in the case of war and nuclear risks.
What Does Natural Disaster Insurance Not Cover?
Homeowners also need to double-check what kind of flood insurance is included in their insurance policies, if they have any at all. While many home and property insurance packages include coverage for flooding, it is rarely for ‘overland flooding’ but in fact for ‘sewer back-up’.
What’s the difference? Overland flooding covers water damage caused by external water seeping into a property, say through the walls or the basement, while sewer back-up refers to damage from an internal overflowing sewage system. It’s important to check the specific wording of an insurance package, since governments are becoming increasingly resistant to pay for flood damage, and assuming you’re covered could be costly.
Earthquakes, earth movements, landslides and sinkholes are also tricky areas. Most standard Home insurance policies do not include these, so specifically worded Disaster coverage must be taken out – the phrase you want to look for are ‘named perils’ – although though not all offer financial protection.
Man-made disasters such as war or nuclear accidents are standard exclusions to most insurance policies not specifically covering political risks, and Disaster insurance is no exception.
Who Needs Natural Disaster Insurance?
Typically, Disaster insurance can benefit homeowners and businesses in risk areas like coastal towns, flood-risk areas, areas affected by subsidence and earth movements and other high-hazard locations, as well as travellers to high-hazard locations
If you don’t own a business or property in a high-hazard location it may be possible to add an ‘all-perils’ coverage to an existing insurance policy. Otherwise a separate Disaster insurance policy is recommended, though as disastrous events become more common premiums are also increasing.
What Type Of Natural Disaster Insurance Should I Buy?
- Business Interruption
- Home Insurance
- Flood Insurance
- Sewer Back-Up