Natural Disasters And Your Car Insurance: What You Need To Know

Natural disasters are becoming increasingly more common in populated areas, where they wreak havoc on communities. They can also wreak havoc on your car. And if you don't have the right car insurance, you could find yourself footing the bill for the damage. The following is a brief guide on everything you need to know about natural disasters and your car insurance.

Incidents that Qualify as a Natural Disaster

Several incidents may qualify as natural disasters, including floods, hurricanes, wildfires, earthquakes, tornadoes, and certain storms. In order to qualify as a natural disaster, the incident must affect multiple people in a geographical area.

If the incident only affects your property or is otherwise limited to a specific location, it is usually called an “act of God” rather than a natural disaster. Examples of such incidents include sinkholes, landslides, fallen trees, and lightning strikes. 

Natural Disasters Aren't Covered Under All Insurance Policies

Not all insurance policies cover natural disasters. Most policies that have comprehensive coverage will cover you in the case of a natural disaster or act of god. Liability coverage, on the other hand, does not include comprehensive coverage and will not cover damages caused by natural disasters. 

Even if you have comprehensive coverage, you may not have coverage for certain types of incidents if they are excluded from your policy. Flood coverage, for example, can sometimes be excluded if you live in a flood-prone area.

How to Find Out if Your Car Is Covered

Are you covered for natural disasters and catastrophes? If you don't know, you should find out because you must have the correct coverage in place before an incident occurs in order to be covered.

How can you find out? Look at your insurance policy or contact your insurance agent. First, make sure that you have comprehensive coverage. It will be listed on your policy's declarations page. Next, read your policy to uncover any possible exemption clauses. If you're unsure about any of the language, ask your insurance agent to explain it to you. 

How to File a Natural Disaster Insurance Claim

Since natural disasters affect multiple people at once, insurance companies are often inundated with claims. This may change the claims process a bit. Instead of getting a visit from an insurance adjuster, you may have to document the damage with pictures and forward them to the adjuster.

Always take pictures that depict the damage as soon as it is safe to do so. Next, call the claims number on the back of your insurance card to start the claims process. Follow all instructions provided to you to ensure that your claim will be processed smoothly. 

Natural Disaster Claims May have Terms and Conditions

Insurance companies often set unique terms and conditions for natural disaster claims. For example, all people affected by the disaster may be required to file a claim within a certain time frame. You may also have to offer proof that your vehicle was damaged on the date the disaster occurred. 

After a natural disaster occurs, it is not uncommon for insurance companies to put a policy freeze on individuals in the affected areas. If this occurs, you will not be able to update your policy or add additional coverage during the freeze. This is a measure to prevent people from adding disaster coverage after the incident in order to seek compensation for damages.

Natural disasters and other catastrophes are a real threat to your car. If you need coverage, or if you have questions about your coverage, contact  Illinois Insurance Center Inc ., today. Taking a few minutes to make sure you're covered could save you a great deal of headache and money down the road.