It’s crucial to note that earthquake coverage from your insurance provider usually won’t cover the entire financial toll of an earthquake (via Insurance Information Institute). Therefore, you will need to take out the policy that works best for your requirements and save for the inevitability of at least a few repair attempts coming out of your pocket. Building an emergency fund is a crucial step for any homeowner. Natural disasters also happen in all corners of the United States and around the world. On the east coast, homeowners must deal with the annual effects of hurricane season. Northerners often brave the bitter cold that descends over many of the winter months and may have to ride out a blizzard or two. And Midwesterners are faced with the potential for tornadoes, wildfires and the occasional windfall.
No matter what kind of emergency you may be facing, it’s important to know that your insurance policy will likely require a little supplement out of your own pocket. Insurance providers will at least charge you a deductible to avail the policy benefit. This means you may be on the hook for a small portion of the repairs, but if you’re remodeling an entire home, this small percentage can add up to a significant dollar figure. So having emergency cash set aside for use under these dire circumstances is essential for all homeowners, regardless of the type of insurance you take out.