Does home insurance cover natural disasters?

Wildfires.

Flash floods.

Earthquakes.

As climate-related events become more frequent and damaging, more homeowners are asking: Does home insurance cover natural disasters?

It’s a smart question because assuming your policy covers all risks can lead to costly surprises. Standard home insurance policies protect against some natural catastrophes, but not all. Some of the most expensive perils, like floods and earthquakes, require separate policies.

In this guide, we’ll explain what disasters are covered by home insurance, what’s excluded, how supplemental coverage works and how to protect your home from the growing threat of extreme weather events.

What natural disasters are typically covered by home insurance?

A typical homeowner’s insurance policy covers sudden and accidental events. These are known in the insurance industry as “named perils.” Several types of natural disasters fall into this category and are included in most standard coverage. These include:

• Wildfires– Most policies include fire damage, including smoke damage and temporary relocation costs.
• Lightning strikes – If lightning causes a fire or damages electronics, it’s usually covered.
• Windstorms and hail – These are often included, and becoming more common amongst insurance carriers in all areas, not just coastal.
• Ice and snow – Collapse from the weight of snow or ice is usually covered, depending on the cause.
• Volcanic eruptions – Damage from ash, lava flow or shockwaves is typically protected under a natural catastrophe insurance clause.

In addition to dwelling and contents coverage, your policy likely includes loss of use or additional living expenses, which helps cover temporary housing if your home becomes uninhabitable after a covered disaster.

What natural disasters are not covered by standard homeowners insurance?

This is where many homeowners discover painful gaps after a disaster occurs. Knowing what isn’t covered can help you plan ahead so you’re prepared for any disaster – covered or not. Disasters typically not covered by home insurance are:

• Floods – Rising water from storms, overflowing rivers, storm surges or coastal surge is not covered. You’ll need a separate flood insurance policy, available through the National Flood Insurance Program (NFIP) or insurance companies.
• Earthquakes – Damage from ground movement is excluded in most states. Ground movement is a broader term that includes landslides, mudslides, and sinkholes. You'll need earthquake insurance coverage as an optional add-on or separate policy.
• Landslides, mudslides and sinkholes – These fall under “earth movement” exclusions and require specialty disaster insurance. Earth movement refers to seismic activity like earthquakes and is only covered with earthquake insurance.

Even when people understand the risk, they often assume these events are included under the broad category of Acts of God. But insurance companies assess these events differently due to their high cost and frequency.

Why these gaps exist in natural disaster coverage

Insurance companies rely on risk modeling to assess the frequency and severity of events. Climate-related property risks such as hurricanes, wildfires and flash floods have increased dramatically in recent years, making some perils harder to insure through traditional policies.

• Flood insurance – This is federally backed in many areas.
• Earthquake and landslide protection – This is optional and often costly.
• High-risk zones – Coastal or seismic regions may carry disaster-specific deductibles or exclusions.

In short: location matters. And your base policy may not be enough.

Optional add-ons and supplemental insurance for disasters

If you live in a high-risk zone– or just want extra peace of mind– you can enhance your policy with endorsements and supplemental insurance for disasters.

Flood insurance

Flooding is one of the most common and costly natural disasters, but it's rarely covered by standard home insurance. Flood insurance steps in to fill that gap.

• Covers damage from external water sources (e.g., heavy rain, overflowing rivers).
• Required in FEMA flood zones; recommended for anyone in a moderate-to-high flood risk area.
• Available via NFIP or private flood insurers.

Earthquake insurance

Earthquakes and other seismic events can cause major structural damage, yet they're not included in most policies. That’s where earthquake insurance can help.

• Pays for structural repairs, debris removal and some personal belongings.
• May include separate deductibles and exclusions.
• Available as a home insurance endorsement or a standalone policy.

Sewer backup and sump pump overflow

Water damage from inside your home (like a backed-up drain or failed sump pump) usually requires separate protection. This is where sewer backup and sump pump overflow protection comes in.

• Protects against water damage from plumbing failures during floods or storms.
• Often overlooked but increasingly important during extreme rainfall events.

Loss of use / additional living expenses

When your home becomes unlivable after a covered disaster, this coverage helps you maintain your daily life.

• Covers hotel, food and relocation costs if your home is uninhabitable.
• Can be expanded depending on regional rebuild timelines.

Extended replacement cost coverage

If construction costs spike after a major disaster, your existing coverage might not be enough to fully rebuild. This is where extended replacement cost coverage comes in.

• Protects against price surges in labor and materials after a disaster.
• Highly recommended in disaster-prone areas where rebuild costs fluctuate.

How coverage works in real-life disasters

Scenario 1

A wildfire tore through a neighborhood in Colorado. Stephanie had standard homeowners insurance with full dwelling and additional living expenses coverage. When her home was destroyed, her policy paid to rebuild it and covered her hotel stay while she waited. Her neighbor, Miranda, had similar coverage, but with outdated limits that didn’t reflect her home’s current rebuild cost. As a result, Miranda had to dip into savings to finish construction and replace essentials.

Scenario 2

In Florida, a powerful hurricane brought heavy rain and storm surge inland. Darren had flood insurance through NFIP, so when water entered his home and damaged his flooring, walls, and appliances, his claim was approved. His neighbor, Carlos, had windstorm coverage through his homeowners policy but no flood insurance. Because the damage was caused by rising water, his claim was denied, even though the hurricane itself was a covered peril.

Scenario 3

An earthquake struck outside Portland, cracking foundations and shifting entire homes off their slabs. Elena had earthquake insurance, so her policy helped cover structural repairs and cleanup after her deductible. Her colleague Jason didn’t carry earthquake coverage and was left to cover tens of thousands in foundation repairs on his own.

How to choose the right natural disaster insurance coverage

Choosing the right protection takes more than just picking a standard policy off the shelf. To make sure your coverage truly fits your home, your risks and your budget, it's important to review what you have and look for any gaps. Here’s how to evaluate your current policy and make smart updates.

Review your current policy

Your most important step is understanding your current coverage. You may already have the right policy for you. What to do:

• Know what disasters are included vs. excluded.
• Understand your deductibles and personal property limits.

Check your location’s disaster profile

Knowing your area’s specific risks can help you to know what coverage you might need and what questions to ask your insurance company or brokerage. Consider:

• Use FEMA flood maps and seismic zone data.
• Ask your insurance company if you’re in a wind, fire or earthquake risk area.

Avoid common coverage mistakes

These mistakes are common and can be costly. Protect your home by properly preparing and getting the coverage you need. Keep these in mind:

• Don’t assume flooding is covered.
• Many homeowners overlook optional add-ons like sewer backup or loss of use coverage, which can leave gaps in protection.
• Don’t forget to update coverage after renovations or home value increases.

Compare disaster insurance options

There are a lot of coverage types. To know for certain that you’re getting the right coverage for you, talk to an insurance broker like the VIU by HUB Advisory Team about:

• Talk to an advisor about bundling flood or earthquake insurance with your home policy.
• Ask whether you have actual cash value or replacement cost coverage.

What home insurance does (and doesn’t) cover

Does home insurance cover all natural disasters?
No. It typically covers wildfires, lightning, hail and wind. Floods and earthquakes are typically not covered, but talk to your insurance company or VIU by HUB Advisor to learn more

Is storm surge damage considered flooding?
Yes. It’s treated as flood damage and requires separate flood insurance.

Can renters insurance cover natural disasters?
It may cover damage to your belongings from fire or wind but typically does not include flood or earthquake protection unless added.

What is considered an Act of God in insurance?
Uncontrollable natural events like hurricanes, lightning or earthquakes. Coverage depends on your specific policy.

How much does flood insurance cost?
It varies widely based on your flood zone but typically ranges from $400 to $1,500 per year.

Relying solely on a standard homeowners policy can leave you exposed when the unexpected happens. And with natural disasters becoming more common, proactive protection is essential.

Final Thoughts

Whether you're facing wildfires, rising seas or shifting ground, the key is to understand what your policy covers and what it doesn’t. Only then can you take steps to close the gaps.