Tags: disaster | health | insurance | natural | disaster insurance | earthquake insurance | tsunami insurance

What Is Disaster Insurance?

Wednesday, 03 Nov 2010 05:08 PM

Disaster insurance is a monetary agreement between an insurance company and an individual, entitling the individual to compensation for losses incurred during disasters. A few common examples include natural disaster insurance, earthquake insurance, and tsunami insurance.
When affected by large-scale disasters, such as floods, people can benefit greatly from having natural disaster insurance. These policies cover flood insurance, emergency insurance, tsunami insurance, and insurance for the risks associated with storms.
This type of insurance is also known as “catastrophe risk insurance.”
Overall, natural disaster insurance may cover human beings, cattle, residential property, movable property, industrial risks, and other risks of a similar nature. Situations in which it may be beneficial to have disaster health insurance include riot, strike, and malicious damage. In applicable cases, it covers earthquakes and allied perils.
Disaster health Insurance (DHI) is applicable in the cases of community perils such as plague, cholera, and contagious perils such as Swine (H1N1) flu. In case of war risks, it may be beneficial to have DHI in the event of biological, nuclear, or atomic warfare. The need for disaster health insurance may arise due to “community liability perils.” 
The monetary compensation levels in the case of both disaster health insurance and natural disaster insurance like earthquake insurance and tsunami insurance are usually high. It is advisable for people living in  catastrophe-prone areas to take out a natural disaster insurance policy in order to be compensated in times of emergency.
Initially, though people may not want to trust the insurance companies and pay the premium for disaster health Insurance, it is indeed a wise decision to invest in the event that one needs emergency insurance for any of the above-mentioned events.
There are several companies that provide natural disaster insurance and disaster health insurance at a reasonable cost. After reading the policy terms and conditions carefully, one can choose a policy, such as flood insurance, according to their needs.
Thus, a timely disaster insurance policy, if invested with care and caution, can prove to be very advantageous during emergency situations.

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