Make Sure Your Policy Covers Freak Disasters

The trick, as always, is to read the fine print. But when it comes to unlikely natural disasters, you may already be insured for more than you think.

A farmer's homeowners policy covers "most storm damage," according to the company's Web site. And "windstorm" damage, for instance, is usually covered in your typical renters insurance, according to a representative at State Farm Insurance. This usually covers damage caused by hail or tree branches in a windstorm and it may or may not include hurricanes and tornados.

Other potentially damaging events, like floods and earthquakes, require specialty policies.

Rubenstein notes that some insurance carriers may deem that "wind storms" and "high winds" are different things -- and hurricanes may be considered a step up from that. A separate deductible on your homeowners insurance for high wind or hurricane damage in certain areas can range anywhere from 1% to 10% of the value of your home.

For renters, things may be less complicated.

A few misperceptions about renters insurance: It doesn't increase substantially with cost of living, meaning it doesn't cost exponentially more in New York City or San Francisco, for instance, than it does in a smaller suburban area. Unlike housing prices or parking, there is no outlandish cost-of-living correlation -- just that the more you want to insure, the more it will cost, of course.

Even without a security alarm system, it is likely renters insurance won't cost you more than your monthly Netflix subscription. As it says on the Allstate Web site, "It only costs a little to insure a lot." Most insurers' Web sites have free quotes to help you shop, but you'll likely find minimum coverage starts in the range of $200 to $350 a year -- although some exists at $10 a month.