Natural Disaster
What Does Natural Disaster Mean?
A natural disaster is an event caused by natural forces that can result in significant harm to property or people. Many insurance policies provide coverage for natural disasters to shield individuals from the devastating financial hardships these events can cause.
Insuranceopedia Explains Natural Disaster
Tornadoes, earthquakes, tsunamis, hurricanes, and volcanic eruptions are examples of natural disasters capable of causing immense damage. The type of natural disaster coverage offered in property insurance policies often depends on a person’s location. For example, individuals living near an active volcano are more likely to need coverage for volcanic eruptions, while those in tornado-prone regions are more likely to require tornado coverage. Consequently, location plays a significant role in determining natural disaster coverage. In some cases, insurance companies may even decline to cover certain natural disasters.
