Flooding? Landslides? Earthquakes? Most people don't buy insurance for these types of losses, preferring to believe that 100-year floods truly happen every century or so. In California, which has been hit by two major quakes since 1989, about three-quarters of homeowners in the state don't carry earthquake insurance. Landslide coverage is often hard to get, particularly if you live on a hill.

Most homeowners choose to gamble on Mother Nature. Perhaps they do so because they aren't aware that their homeowners policy doesn't cover certain catastrophes. Perhaps they do because of the price of flood, landslide and earthquake policies. Or perhaps they like the odds that nothing will happen that isn't covered by their homeowners policy. The consequences can be devastating, however.

In Ohio, flood losses account for more damage compared to those caused by an earthquake. It stands to reason then that flood policies are usually a few hundred dollars a year whereas coverage for an earthquake can usually be added to your homeowners policy for less than $200 (depending on the value of your house).

Tip. Whatever their reasons, make sure you are comfortable with the risks you are assuming. Insurance is available for flooding, earthquake and landslides. Ask your agent to find out how much these policies would cost you.