Earthquake Insurance Basics
Earthquakes are not a concern for everyone in the country, which is why purchasing earthquake insurance is not always a popular discussion piece. However, for those who have lived through a high-magnitude earthquake, the painof paying for and repair damages are only overshadowed by the frightening experience itself.
Earthquakes can cause insurmountable damage to buildings and everything within them. So if you live on or near a fault, you want to make sure you know what precautionarymeasures to take to keep your family safe, then take steps to repair the possible destruction that follows by purchasing earthquake insurance.
What You Should Know about Earthquake Insurance
When preparing to purchase earthquake insurance, most people are concerned with exactly what it is, how much it will cost, and what it covers, so let’s take a quick look at these concepts:
- What Is It? Earthquake insurance is a type of catastrophic policy and isusually an additional type of coverage to purchase outside of homeowner’s insurance. Because homeowners insurancetypically doesn’tcover everything – including damages caused by earthquakes – it’s important to look into earthquake policies that can help recover damages in the event that one occurs in your area.
- What Does It Cost? The cost of earthquake insurance can vary depending on the provider, as well as your home value and how old your home is (the older it is, the more likely it will be damaged, which raises the premium). Also, the likelihood of having a quake, as well as a lowerdeductiblecan raise the premium.
- What Does It Cover? You’re probably dying to know what earthquake insurance covers. This may vary depending on the provider you work with, as well as choices you make along the way; however, ideally you want a policy that will cover the cost of repairing and/or rebuilding your home. Also, it’s good to make sure your policy covers accessory structures, contents in your home, and temporary living expenses.
The last thing you want is for an earthquake to surprise your family and destroy your home and belongings, leaving you financially unable to recover. So before the next one strikes, it’s a good idea to securea quality earthquake insurance policy.