Make Sure Your Policy Covers Freak Disasters

Whether you're coastal or landlocked can make a difference -- particularly for homeowners in a flood zone -- and your carrier may be a stickler about storm shutters or impact-resistant glass.

It's of utmost importance, as the hurricane season is arriving full force, for those in coastal areas to purchase flood insurance. You usually have to get it through the National Flood Insurance program in addition to a typical homeowner's insurance policy. Some insurers will supplement this coverage, and higher-end carriers such as AIG may write it for you, according to Rubenstein.

Also, earthquake insurance may have to be purchased through the appropriate earthquake authority in your area -- such as the California Earthquake Authority -- in addition to a property insurance policy.

But your region won't delegate all of the specifications of your policy. Almost everyone is covered for cross-region threats such as fire and theft, and the fine print of your policy probably also says it doesn't cover the following, regardless of whether they are common or uncommon to your turf:

• Any ordinance of law, such as demolition.

• Earth movements or rising or shifting of earth (i.e., an earthquake).

• Water damage caused by a flood, tsunami, tidal wave, etc. (hurricanes, however, may be looked at as wind storms, so check with your carrier). Water damage that occurs from pipes freezing or bursting -- related to weather or not -- may or may not be covered, but can possibly be tacked on for as little as $6 a year, depending on the provider.

Some policies will have a list of what is covered, while others have lists of what's excluded. The most important question to always ask is "what's not covered?" Visit the Insurance Information Institute's Web site for more on typical coverages.

One more tip: Consider supplementing renters insurance with liability insurance, which may already be included. "I always advise that renters in the city take the highest liability limit that they can afford. I often recommend they take a higher deductible and use that premium savings to buy more liability coverage," he says. That way, if your toilet or sink floods or drips down and you're sued by the apartment below you for damages they incur, you'll be covered. The good news is you'll likely find you can get up to $1 million in liability coverage for less than $100 a year. A lot for relatively little.

Needless to say, I will not be getting earthquake or flood insurance for the sixth-floor apartment I rent in New York, but it's good to know that should a freak storm break pipes or windows or start a fire, I'm covered.

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