Is mudslide covered by insurance?

Mudslide is not covered by insurance. Insurance specifically excludes coverage for mudslide in it's wordings. So the costs to repair or replace your home, contents and temporary living accommodations will be out of your own pocket. Not many people have that type of resources to call upon.

When there is this type of a disaster the government will normally step in and provide financial assistance. You will also see this in flood situations where there is no home insurance available.

Mudslides can happen unexpectedly. On June 13 2010 there was a mudslide in the South Okanagan of British Columbia. Several farm buildings and five homes were destroyed. Fortunately the B.C. government has stepped in and will provide some financial assistance.

The compensation has a ceiling of 80% so that is large deductible. Think about that for a minute. Normal homeowners insurance has a $500 or even a $1000 deductible. If your home is worth a modest home price of $300,000 and it is destroyed then the maximum you would have for rebuilding is $240,000. Consider the cost of replacing everything you own and the costs to live somewhere else while all this is being done. This is going to hurt.

The investigation into the B.C. South Okanagan mudslide shows a failure of an irrigation reservoir's embankments.This reservoir is located in the mountains above the affected community. There will have to be an assessment of other small reservoirs to be sure that the same hazard is not going to cause problems for more locations.

Insurance is not the answer to every problem. Risk management to try and prevent as many problems as possible is something that needs to be diligently observed. For the unexpected then you need to be prepared as possible. Do an inventory so you have an idea of what you have lost in this type of disaster. It will help you make your claim. Have an emergency kit. Like the Boy Scouts say, "be prepared" and consider the hazards that affect where you live.

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