insurance

6 things home insurance won't cover

Nuclear plant accidents
Nuclear plant accidents © spirit of america/Shutterstock.com

The Federal Emergency Management Agency, or FEMA, says nearly 3 million Americans live within 10 miles of an active nuclear power plant. If an accident at a nearby reactor leaves your home uninhabitable, standard homeowners insurance will not cover the claim. But that does not mean you will be unprotected.

A 1957 federal law called the Price-Anderson Act compensates people in the United States for any damage or injuries resulting from a commercial nuclear accident.

The law was called upon after the nation's worst nuclear accident, at the Three Mile Island plant near Harrisburg, Pa., in 1979.

"The insurance paid for the living expenses of families who decided to evacuate," Worters says.

The Nuclear Regulatory Commission says an insurance pool of more than $12 billion is available to pay out claims.

Claims covered under Price-Anderson include:

  • Bodily injury.
  • Sickness.
  • Disease resulting in death.
  • Property damage and loss.

In addition, individuals evacuated from an affected area can expect reimbursement for reasonable living expenses beyond what you ordinarily pay. "The coverage does not pay your mortgage, does not pay for your normal food bills," Worters explains.

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