No matter how prepared you may be, nobody fully expects a natural disaster to occur when it does.
However, a safeguard is in place to protect your home in the event of a catastrophe. Home insurance is the best protection you can personally have as the Disaster Financial Assistance program (DFA) has changed. Between 2007 and now, $47 million has been paid out to local governments and persons. Due to this large sum, the DFA has changed how a person or place is covered. In the simplest terms, if an insurance company can provide coverage and the insured declines said coverage, they will not qualify to receive funds from the DFA in case of a cataclysm.
“That sounds like a whole lot of jargon that I just don’t have the time or patience to read about.” Agreed, it’s not the most exciting topic, but it is an important one, so let’s start with when someone is eligible for the DFA.
After working with local governments, the first requirement for the DFA is that the provincial government must declare the disaster eligible to receive assistance under this program. If they do not, unfortunately, no assistance will be given. Any damage regarding the general public must have come from a non-insurable catastrophe. For a list of eligible disasters, please see this link. Landslide-related cracks may or may not qualify depending on whether or not the damage was caused by slope instability.
Damage from wildfires, earthquakes, and flooding can all be covered by insurance companies, and therefore, they are not covered by the DFA. However, flooding coverage is a relatively new coverage offered by insurance companies, so there may be limitations on what areas are eligible. There are instances, however, where a person may not be applicable for these from their local brokers, or the cost may be unreasonably high considering the risk and not what the insured may find affordable. In these cases, exceptions may be made, but it is best to look into what is needed to prove to the government in the event of a natural disaster that you, as the insured, tried your utmost.
Excluding local government, homeowners, tenants, small business owners, charities, and farmers are eligible for compensation. The DFA will first attempt to replace or rebuild the building, but only to a livable standard and only as it was before the disaster happened. The average claim is roughly $10,000 though the maximum value is $300,000. Contents are inventoried at a monetary amount considering depreciation, and be aware that other limitations exist. If a person is earning money from their ventures, they must prove it’s their primary income to receive funding.
Please see the link below for all the Disaster Financial Assistance program information. Don’t hesitate to ask your broker if you are not eligible for insurance if you would be covered.
Disaster Financial Assistance Program
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