The catastrophic fires in California this week are a grim reminder of the financial impact of natural disasters.

Damage resulting from floods isn’t covered by most renter’s insurance policies.

Do you have the right insurance policy for your house?

Most people’s home is their largest asset.

If something happens to yours and it’s not covered by an insurance policy, you could lose everything.

Even if your home is fully paid off, opting to drop your homeowners insurance policy is incredibly risky.

You cancheck to see which types of damages your insurance policy coversby reviewing your policy’s declarations page.

There you’re able to find what is covered and for how much.

It should also list exclusions.

How natural disaster insurance works

Any kind of disaster-related insurance is separate fromhomeowner’s insurance.

It goes beyond what’s typically covered by your homeowner’s policy.

There are different policies for different types of events, including floods, extreme wind damage and earthquakes.

You may need to file multiple claims, depending on the damage throw in.

Each damage punch in will require a claim with its respective insurance provider.

If the disaster is widespread in your area, expect long wait times.

Wildfires

Most homeowners insurance policies cover destruction and damage sparked by fire, which includes wildfires.

So you don’t need a separate policy to protect your home against wildfires.

Since 2022, Allstate hasstopped writing new homeowners insurance policies in California, followed by State Farm and others.

If you’re in California, you aren’t without options.

Read more:Does Your Home Insurance Cover Wildfire Destruction?

Floods

Flood damage isn’t covered by a standard homeowner’s policy.

Ardron said flooding can be because of prolonged rain, but also snowmelt and dam failures.

Remember that windstorm coverage doesn’t cover storm surges or flooding, so you might also need flood insurance.

There is typically approximately a 16-day waiting period for windstorm coverage to take effect.

Homeowners who want to protect their homes from earthquakes will need to purchase separate policies.

It doesn’t cover indirect damage, such as fire or water damage.

Otherwise, you may need to file more than one claim.

Volcano coverage is included in most homeowners insurance policies, but sinkholes and tsunamis are a different story.

You may need flood insurance to cover tsunami and mudflow damage.

Sinkhole protection requires a separate sinkhole endorsement.

have a go at file your claim the day the damage occurs, if possible.

Include the purchase date, model and serial number, if applicable.

Use photos and video to document an item’s current condition.

Store documentation securely in the cloud in case your storage gadget is destroyed.

If the event is widespread and multiple homes are affected, it could take longer.

If possible, store damaged materials in garbage bags that the adjuster can later open to inspect.

Warning:Scam contractors are quick to take advantage after a disaster.

How should homeowners handle or minimize a high deductible?

If you’re free to, avoid a low-deductible plan.

If a client buys lower deductibles and doesn’t submit small claims, they’re paying more for nothing.

So, it’s best to avoid low deductibles," Schachter said.