Insurance Information Institute Warns Drivers about Earthquakes and Auto Insurance

Posted in Home Insurance

January 21st, 2010

The severe earthquake that hit Haiti a little over a week ago reminded the Insurance Information Institute (I.I.I.) of the vulnerability of many drivers and homeowners who are more underinsured than they think.

According to the institute, having standard auto or homeowners insurance may not be enough if an earthquake hits, they may also need some form of earthquake coverage.

What is Earthquake Insurance?

We have some great articles that address the basics of earthquake insurance, what it covers, and whether you need it. However, to sum it up, earthquake insurance is a type of catastrophic policy that is usually added to a homeowners or auto insurance policy. Without these additions to your policies, you won’t be covered if damage is incurred after an earthquake. It’s for this reason that III is encouraging home and auto owners to pick up this additional coverage.

Get the Additional Coverage

According to III, the vast majority of homeowners who live in seismic zones do not purchase earthquake insurance. The same goes for those covered by auto insurance policies. Because the United States has several faults, the threat is always there for an earthquake, which is why III suggest getting as much financial protection for your personal property as possible.

To get your hands on an earthquake policy, it’s good to talk with your current homeowners or auto insurance company. If you don’t have one or either, now’s the time to shop for auto and homeowners coverage, don’t you think?