When you’ve been in your home for a while and have established a certain amount of equity, it can be a good feeling to know that you have an investment you can count on. However, with changing weather patterns you may be afraid of a natural disaster striking and what it could mean for your financial well-being. If you’re curious about how this can impact your mortgage, here are a few things to consider.
Determine Your Protection
The thought of having your home adversely impacted by a natural disaster is bad, but it can be even worse if the proper precautions haven’t been taken to insure your house against its wrath. While there are certain calamities that will be less likely in your area and may be difficult to get insurance for, if you live in an area prone to floods or earthquakes, you should have protection against their occurrence. In all likelihood, if you’ve taken the proper precautions when taking on home insurance, your home should be prepared for what nature unleashes.
Contact Your Insurance Company
Whether you’re certain that your home is covered in the event of a natural disaster or not, it’s important to contact your insurance company as soon as disaster occurs so that you can make the necessary claim. This means that you’ll need to be able to explain what happened, the extent of the damage and provide photographic evidence of your claim so that you have the evidence to back it up. Once the worst has occurred, you’ll want to file a claim with the company as soon as you can to ensure you’ll get back what you’ve invested.
What Does Homeowner’s Insurance Cover?
Generally speaking, there are a number of natural disasters that are included under homeowner’s insurance including tornadoes, hurricanes and wildfires. Insurance for disasters like earthquakes, floods and tsunamis can be purchased separately, while the occurrence of landslides and avalanches may be covered separately. It’s important when purchasing a home that you are covered against natural disasters that can occur in the area so your biggest investment is not at risk.
The occurrence of a natural disaster is stressful enough without having to worry about the possibility of your insurance not covering the damage. If you are currently looking into homeowner’s insurance and are considering a home purchase, contact your trusted mortgage professionals for more information.
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About the Author:
Babak Moghaddam graduated from University of Southern California in 1985. He entered the mortgage industry as a compliance auditor at the Bank of New York in 1986 and completed his masters in Business Administration two years later. After seventeen years in the traditional mortgage banking world Babak finally transformed this vision into his own practice in 2002 when he formed Charter Pacific Lending Corp, a mortgage company that has provided over $900 Million in residential real estate loans throughout Southern California. Babak and his team do things a little differently than other mortgage providers. They work as financial advisors, because they have come to realize that a mortgage is a very powerful financial tool. And just like any other financial tool, it should be managed as part of the overall financial management plan to reach every home owner’s long and short-term financial goals much faster. You can contact Babak for a free consultation and strategy session at (800) 322-1217 X103.