Preparing to Withstand a Disaster Most Americans live in areas that are vulnerable to some kind of natural disaster. Floods and earthquakes are generally excluded from standard homeowners policies, so you might consider additional coverage. About 90% of natural disasters in the United States involve flooding, but only 30% of homeowners in the highest risk areas have a flood insurance policy. Source: Insurance Information Institute, 2022 Floods. Floods often result from storms, broken levees, spring snow thaw, poor drainage, and the rapid accumulation of water caused by torrential rain. Flood coverage is available from the National Flood Insurance Program (NFIP) and from some private insurers. There is a 30-day waiting period before a flood policy takes effect. Earthquakes. Supplementary earthquake coverage is available through private insurers. In California, it is also available through a state-run program. Earthquake insurance typically carries a deductible based on a percentage of replacement value, ranging from 2% to 20%, rather than a dollar amount. Policy rates and deductibles depend on the age and construction of the home and how likely it is for earthquakes to occur in the region.