Natural hazard guidance: what your home policy covers — and what it doesn't
Floods, storms, and earthquakes are becoming more frequent and severe. Here's what standard home insurance covers, where the common gaps are, and how to review your policy before the next event.
Why natural hazard insurance matters more than ever
The frequency and cost of natural catastrophes has risen sharply over the past decade. According to Swiss Re Sigma data, natural catastrophes caused global insured losses of more than $100 billion in each of the past several years — and a significant portion of losses remain uninsured because standard policies don't cover them.
Understanding the gap between what your policy covers and what a natural event can cause is not just financial planning — it is disaster preparation. This article focuses on the three most common gaps: flood, earthquake, and subsidence.
What standard home insurance typically covers
Most standard home insurance covers damage caused by:
- Storm — wind, hail, rain damage to the structure and contents during a storm event
- Lightning — structural damage and damage to electrical systems or appliances
- Fire — including wildfires if they reach the property (though some policies in high-risk zones are now excluding wildfire)
- Burst pipes and internal water escape — damage from internal plumbing failures
- Subsidence — in some markets, covered subject to significant excesses
The key word is "typically." Policy wordings vary, and the exact definition of "storm" in your policy can determine whether a borderline event is covered. Always read your policy's definitions section. Our guide to insurance exclusions explained covers how definitions affect coverage.
The three biggest natural hazard coverage gaps
Flood
Typically excluded from: Standard home buildings and contents insurance in most countries.
How to get it: In the US, flood cover is available through the National Flood Insurance Program (NFIP) or private insurers. In the UK, Flood Re enables high-risk properties to access flood cover through standard insurers at reduced cost. In Australia, flood cover has been mandatory to offer as an option since 2012.
Warning sign: Even where flood cover exists, there may be separate, higher deductibles for flood claims.
Earthquake
Typically excluded from: Standard home insurance globally, including in earthquake-prone regions unless specifically endorsed.
How to get it: As a standalone policy or endorsement. In California, the California Earthquake Authority offers residential earthquake insurance. In New Zealand, the Earthquake Commission (EQC) provides first-layer cover with private insurers covering the excess.
Warning sign: Earthquake policies typically have a waiting period of 7–30 days after purchase before cover begins — you cannot buy it during an earthquake swarm.
Subsidence and ground movement
Typically excluded from: Most home policies, or subject to very high deductibles and strict definitions when included.
How to get it: Some UK home insurers include subsidence cover subject to a £1,000+ excess. Specialist structural warranty or ground movement cover may be available depending on soil type and location. The ABI subsidence guide explains the claims process for UK policyholders.
How to review your policy for natural hazard gaps
- Look for a "Natural events" or "Natural perils" section and an "Exclusions" section in your policy wording. Check whether flood, earthquake, and subsidence appear.
- Check your property's flood, earthquake, or subsidence risk using national mapping services — long-term flood risk checker (UK) or the FEMA flood map service (US).
- Compare the cost of adding the relevant endorsement or a separate policy against the financial exposure you would face in an event. Use our coverage calculator as a starting point.
- If you have a mortgage, check whether your lender requires flood or earthquake cover — many do in high-risk zones.
Making a claim after a natural event
If your property is damaged in a storm, flood, or other event:
- Notify your insurer as soon as it is safe — delays can affect your claim
- Document all damage thoroughly with photographs before any cleanup
- Keep receipts for emergency repairs needed to prevent further damage
- Do not dispose of damaged property until the insurer or their assessor has seen it
- If the event is widespread, expect delays — insurers experience high claim volumes after catastrophes
See our full claims guide for the step-by-step process, including what to do if your claim is disputed.
Natural hazard FAQ
Frequently asked questions
- In most countries, flood damage from external water sources (rivers, sea, surface runoff) is not included in standard home insurance. It is available as a separate policy or endorsement. The National Flood Insurance Program (FEMA) in the US and the Flood Re scheme in the UK exist specifically to make flood cover available to high-risk properties.
- Storm damage typically refers to damage caused directly by wind, rain, hail, or lightning during a named weather event — and is usually covered by standard home insurance. Flood damage refers to inundation by surface water, overflowing rivers, or storm surge and is usually excluded. The distinction matters greatly when making a claim. The ABI flooding guidance explains how UK insurers interpret each term.
- No. Earthquake is excluded from standard home insurance in most jurisdictions. In earthquake-prone regions (California, New Zealand, Japan, parts of Australia), separate earthquake policies or endorsements are widely available. The Insurance Information Institute earthquake guide covers US options and costs.
- No — you should notify your insurer as soon as it is safe to do so, regardless of whether the event has been officially declared a disaster. Take photographs of damage, keep receipts for emergency repairs or temporary accommodation, and follow your policy's notification requirements. Our claims guide has a step-by-step process for natural disaster claims.