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Earthquake Insurance

The Important Facts on Purchasing Earthquake Insurance

If the area you live in is experiencing earthquakes, then you have probably been looking at how to ensure your property for potential earthquake damage. Average home insurance policies do not cover damage from earthquakes. So, finding a policy or adding earthquake coverage to your existing plan is the usual option.

What Is Earthquake Insurance?

Earthquake coverage will pay for specific damages such as the following:

Your personal belongings damaged in the insured structure, such as furniture, clothes and basic home items.
Repairs to the damaged home structure and attached buildings such as a garage.

The following damages not covered on an earthquake policy:

A flood of any kind. Separate flood insurance is available for any flood event.
Damages to vehicles. Auto policies can cover the damage if you have adequate coverage.
Fires caused by an earthquake can be covered by your homeowners’ policy.

Most policies will also cover living expenses if you are unable to live in your home. The coverage and length of time can vary by plan, so check the coverage carefully.

Who Needs Coverage for Earthquakes?

People who live in earthquake-prone states will need coverage for earthquake damage. Some states have no history of earthquakes; those individuals will not benefit from purchasing coverage for earthquakes. The U.S. Geological Survey will be able to track the tremors and earthquakes in your area.

How Does Earthquake Coverage Work?

Earthquake coverage differs in some ways from homeowner’s coverage. Earthquake policies have large deductibles. The deductible amount is subtracted from the payment on your total claim. Also, some plans may have separate deductibles for structure and possessions.

What Are the Different Types of Earthquake Coverage?

Policies are available for homeowners and renters. The coverage for renters will be available for personal property and homeowners will be covered for structural damage and personal property.

What Are the Major Benefits of Earthquake Coverage?

Having coverage for earthquake damage in areas that have a history of earthquakes is a wise choice. A policy for earthquake damage may be the only way to rebuild or purchase items destroyed.