Do I Need Earthquake Insurance?

Posted in Home Insurance

September 24th, 2009

Have you ever wondered whether earthquake insurance was a type of coverage that you should purchase? Well, the truth is, anywhere in the country could beaffected by an earthquake at any time – even those places that don’t sit near a fault. But of course, some areas are more likely to be hit than others (i.e. the San Francisco Bay area), and thus recommend that its residents obtain the coverage.

How do I know I need earthquake insurance?

You’ll need to acquire this insurance if you live in an area near a fault or deemed prone to earthquakes by the United States Geographical Survey. But since the past has shown that earthquakes can hit just about any area, it doesn’t hurt to purchase it if you live in an older structure that could easily give if shaken at its foundation. Most importantly, you need to know that earthquakes are not covered in standard homeowner’s policies.

If you’ve ever been involved in an earthquake – even a low-magnitude one – you’ll know that they can be pretty scary. You also know that if the low-magnitude earthquake could shake up your home and cause some cracks within seconds then aslightlylarger one could leaveyour home in a lot of danger. This is why it’s important to consider coverage thatcan protect your finances after a devastating quake.

Maximizing your earthquake insurance policy

Now that you know that you may need it, let’s take a look at some ideas you might consider to make the most of your policy:

• Take inventory of your values, including taking pictures or videos of each room to document proof of your belongs to help process claims more quickly.
• Keep all of your sales receipts and canceled checks.
• Keep track of model and serial numbers of your personal items.
• Store copies of all of your insurance policies in a safe location away from home.
• Know exactly what’s covered in your policy.

It’s tough to experience something as scary as an earthquake, but it’s even tougher to experience it then later realize that you don’t have insurance to cover the damages. Don’t wait until it’s too late to get the coverage you need. If you think you need it, it’s important to compare rates then acquire the right policy for you.