How Does a State of Emergency Affect My Home Insurance?

A declared state of emergency may temporarily affect home insurance by restricting policy cancellations, extending premium payment deadlines or providing additional claims assistance. However, these protections depend on state regulations and emergency orders and do not automatically expand your existing homeowners insurance coverage.

State-of-emergency insurance protections can help prevent your policy from being canceled and provide extra support after a declared emergency.

Homeowners should read on to learn more about possible protections during a declared state of emergency, including how to better prepare and ensure they have the right coverage.

On This Page

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  What Is a State of Emergency?

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  Does a State of Emergency Change Your Home Insurance Coverage?

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  What Can Change After a State of Emergency Is Declared?

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  Does Home Insurance Cover Mandatory Evacuations?

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  Can an Insurance Company Cancel My Policy During a State of Emergency?

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  Can I Buy Home Insurance During a State of Emergency?

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  What Happens if My Home Is Damaged During an Emergency?

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  State of Emergency vs. Federal Disaster Declaration

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  Does FEMA Pay for Damage That Homeowners Insurance Doesn’t Cover?

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  What Should I Do if My Insurance Doesn’t Cover a Disaster?

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  What To Do if a State of Emergency Is Declared Where You Live

• 

  State of Emergencies and Home Insurance at a Glance

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  How To Make Sure You're Covered During a State of Emergency

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  Frequently Asked Questions

What Is a State of Emergency?

A state of emergency is a governor or local government leader's declaration that allows the government to enact additional measures to help manage an ongoing crisis threatening public health or safety, such as a natural disaster or terrorist attack, and protect people. In some cases, a state of emergency could activate anti-price-gouging laws, preventing sudden increases in the cost of certain goods. It can also allow the government to request state or federal funds to help with the emergency, if necessary.^[1]

Does a State of Emergency Change Your Home Insurance Coverage?

While a declared state of emergency won’t affect the terms and conditions of your home insurance policy, including what you’re covered for, it may activate certain consumer protections that your insurance company must abide by. For example, a state of emergency may trigger an insurance moratorium that prevents your insurer from canceling or nonrenewing your policy during the emergency until the moratorium is lifted.^[2]

What Can Change After a State of Emergency Is Declared?

Multiple aspects of your home insurance could change after a state of emergency is declared, as many laws provide consumer protections during an emergency. We’ll cover some of these changes below.

Insurance Cancellations and Nonrenewals May Be Restricted

A state of emergency may trigger an insurance moratorium that restricts insurers from canceling or nonrenewing policies for those within affected areas. The restriction often lasts for a set period after the emergency is declared, such as one year, and prevents homeowners from suddenly losing essential coverage after a catastrophic event like a wildfire or other natural disaster.^[2]

Insurers May Extend Payment Deadlines or Grace Periods

Insurance companies may offer flexible payment terms during emergencies. For example, in 2020, California extended the premium grace period to 60 days for individuals affected by wildfires during a state of emergency.^[3]

Claims-Handling Rules May Change

States can compel insurers to expedite claims handling during emergencies. For example, in California, insurers must pay up to $250,000 or up to 30% of a home’s dwelling coverage limit when a house is known to be a total loss after a declared state of emergency. This lets homeowners receive claim payments in advance, rather than waiting for an adjuster to visit and complete the claims process before receiving funds to begin rebuilding or repairs.^[4]

Additional Living Expenses Rules May Become Especially Important

A declared state of emergency may augment existing additional living expenses (ALE) coverage, providing enhanced assistance. For example, in California, a mandatory evacuation due to wildfire requires insurance companies to provide at least two weeks of ALE, even if the home is undamaged.^[3]

Does Home Insurance Cover Mandatory Evacuations?

Additional living expenses (ALE) coverage may help pay for temporary housing and other necessary expenses during a mandatory evacuation, depending on your policy, the cause of the evacuation and applicable state laws. However, your ALE coverage may be limited to a portion of your dwelling coverage limit or to a set period, often 12 months. In addition, ALE typically doesn’t cover power outages, so if you don’t return home after the state of emergency ends due to a lack of electricity, you may not receive continued coverage.^[5]

Can an Insurance Company Cancel My Policy During a State of Emergency?

Many state of emergency orders coincide with an insurance moratorium, which prevents your insurance company from canceling or nonrenewing your policy during the emergency and for a set period of time afterward.^[2]

An insurance moratorium may not always automatically trigger. For example, while a governor ordering a state of emergency in California automatically triggers an insurance moratorium for those in wildfire-affected areas, an insurance moratorium in Oregon is separately declared by the state’s Division of Financial Regulation.^[6][7]

Can I Buy Home Insurance During a State of Emergency?

Your ability to buy home insurance may be limited during a state of emergency, especially if an insurance moratorium is in place. While cancellation moratoriums may protect existing policyholders, insurers may separately impose binding moratoriums that temporarily restrict new policies or coverage changes in areas threatened by disasters. Even if a state of emergency doesn’t trigger a moratorium automatically, an insurance company may create an insurance moratorium on its own, which can extend anywhere from a few days to longer after the emergency has ended.^[8]

What Happens if My Home Is Damaged During an Emergency?

If your home is damaged during a state of emergency, prioritize your safety, document the damage and contact your insurance company to begin the claims process. Follow these steps to protect your property and pursue available financial assistance:^[9]

1. Make sure you and your family are safe and protected from harm caused by the damage.
2. If you’ve evacuated, wait to return home until emergency officials deem it safe. Keep receipts for potentially eligible additional living expenses, such as temporary lodging and increased meal costs, to support a possible loss-of-use claim.
3. Once it's safe to return home, document all damage to your home with photos and videos.
4. Contact your insurance company and file a claim as soon as possible, provided the damage was caused by a covered peril.
5. Request a payment adjustment to your mortgage payments from your lender if you’re at risk of falling behind or foreclosure due to the damage.
6. Contact government organizations for disaster assistance aid.
7. Meet with a claims adjuster if the damage warrants one, and provide evidence that the emergency caused it.
8. Review your insurer's settlement offer and request reconsideration or dispute the amount if you believe your covered losses were undervalued.
9. Rebuild or replace your home, being wary of potential disaster scams.

State of Emergency vs. Federal Disaster Declaration

State governors or other local officials declare a state of emergency, which triggers immediate assistance with evacuation, shelter and emergency services before or during an emergency. Federal disaster declarations, on the other hand, are issued directly by the president and are typically made after a disaster occurs to mitigate further damage, repair public infrastructure and provide assistance to individuals through groups like the Federal Emergency Management Agency (FEMA).^[10][11]

Does FEMA Pay for Damage That Homeowners Insurance Doesn’t Cover?

FEMA may provide financial assistance for eligible uninsured or underinsured disaster-related losses when a presidential major disaster declaration authorizes Individual Assistance in the affected area. However, FEMA assistance is not guaranteed and generally cannot duplicate benefits available through insurance. For example, while homeowners insurance typically won’t cover sewer backups without an added endorsement, FEMA home repair funds may cover eligible disaster-related repairs, depending on the cause of the damage and program requirements.^[12][13]

FEMA may request insurance settlement or denial documentation when an applicant has insurance relevant to the reported loss. However, homeowners without applicable insurance may not need to file an insurance claim before applying for FEMA assistance.^[14]

What Should I Do if My Insurance Doesn’t Cover a Disaster?

If your insurance doesn’t cover damage from a specific disaster, you should apply for federal aid through FEMA. Even if your insurance doesn’t cover a specific disaster or the damage doesn’t surpass your deductible amount, you’ll likely still need to submit a claim, as FEMA assistance typically requires proof of claim denial or that you’re underinsured for the damage.^[15]

What To Do if a State of Emergency Is Declared Where You Live

If a state of emergency is declared where you live, you’ll want to take action immediately to help mitigate damage before it occurs. Pay attention to evacuation orders and ensure you leave for another shelter if you feel your home won’t remain safe during an emergency, even if you aren’t in an area under an immediate evacuation order. Refrain from returning home until after it's been declared safe to do so, even if damage has occurred to your home.

Below, we’ll cover what to do during a declared state of emergency.

Before Damage Occurs

Before damage occurs during a declared state of emergency, you should:

• Follow official emergency alerts on mobile devices and social media.
• Prepare an emergency go kit in the event you need to evacuate or lose power. Keep at least one gallon of water, multiple days of nonperishable foods, flashlights, first-aid supplies, medications, batteries and other essentials packed.
• Fill your vehicle with gas in advance if you need to evacuate due to a mandatory order.
• Secure your home in case you need to evacuate by closing and locking all doors and windows, shutting off gas and other utilities at the main valves if instructed, and moving valuables to secure areas, such as a second floor if there’s a risk of flooding.
• Store critical documents, such as passports and birth certificates, securely and create digital backups.

If Evacuating

If you need to evacuate before or during a declared state of emergency, you should:

• Leave your home immediately if an official evacuation order is issued, as delaying could put your life at risk.
• Follow specific evacuation routes and procedures, as shortcuts or alternate paths may be blocked or otherwise inaccessible due to a natural disaster.
• If possible, contact out-of-state friends or family members to share your evacuation plans, including where you plan to go.

After Damage

After the emergency has passed and your home has sustained damage, you should:

• Wait to return home and review the damage until emergency officials deem the area safe.
• Check your home's exterior before documenting damage inside. Be wary of potential lingering dangers, such as gas smells, remaining floodwaters, structural shifting or exposed power lines. Report these dangers to authorities immediately if you notice them.
• Take photographs and videos of all damage, including damage to your home and personal property.
• File an insurance claim for the damages. You should also apply for federal and state aid.

State of Emergencies and Home Insurance at a Glance

Below is the essential information you should know about a state of emergency and home insurance:

• A declared state of emergency could enhance your insurance protection by restricting cancellations, extending grace periods and expediting claim payments.
• A state of emergency won’t change your policy details, including your coverage limits, deductible amounts and covered perils.
• You typically can’t buy home insurance during a state of emergency if an insurance moratorium is in place.
• If you aren’t covered entirely by insurance or are lacking necessary coverage, you may get aid from FEMA or other agencies.
• Pay attention to evacuation mandates, evacuation routes and shelter locations if your area becomes too dangerous during an emergency.
• Submitting an insurance claim may be necessary to receive federal assistance through FEMA, even if the damage isn’t covered by your home insurance or won’t exceed your deductible amount.

How To Make Sure You're Covered During a State of Emergency

Below, we’ll cover how you can help ensure you’re covered during a state of emergency:

• Make sure you have proper coverage for potential disasters before they occur, or you risk having your claim denied. For example, homeowners coverage typically excludes earthquake and flood damage unless you add an endorsement or a separate policy.
• Shop around with different insurance providers to find the most affordable coverage for potential emergencies.
• Review your coverage limits and verify that your dwelling coverage limits meet or exceed your home’s replacement cost – otherwise, you may be underinsured.