Tips on Buying Insurance

By Ben Steverman - 2011-09-14T20:16:16Z

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Berkshire Hathaway Inc BRK/A:US -4.11
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Get Disaster Coverage

With disasters in the news, the importance of insuring a home against Mother Nature's bag of tricks is all too clear. Fire insurance won't necessarily pay out if the fire was caused by an earthquake--unless you have earthquake insurance. And coverage for hurricane wind damage might not protect you from the flood caused by the hurricane. (In Louisiana, only 29 percent of households are covered for floods, according to its insurance commissioner.) Flood insurance is available through the federal National Flood Insurance Program for an average of about $600 per year. On coastal areas and beachfront, coverage can be far more costly.