FAQ: What Does Earthquake Insurance Cover?

You probably already know that if you want earthquake insurance you have to purchase it separately from a homeowner’s policy, which may leave you wondering what in the world the earthquake insurance policy will cover. Well, it depends on the provider that you work with; however, there are some basic coverages that you should get out of the deal to protect your finances in the event that an earthquake hits in your area.

Property Damage

First and foremost, the point of earthquake insurance is to provide you witha way to pay for damagesto your home after an earthquake, which is somethinga standard homeowner’s policy doesn’t cover. If you obtain a policy, you should acquire enoughcoverage to pay for repairingor rebuilding your home.

Personal Items

In addition to your structure being protected from damage with an earthquake policy, your personal items are also protected. In many cases, you will be required to take out coverage for at least 10% of the cost of your dwelling to cover your personal property.

Temporary Housing and Extras

This is where you might see some varying features in your coverage. Depending on the insurance company you work with, you may receive temporary housing (rental home, apartment, hotel) if your home is too damaged to stay in while being repaired. Also, you may receive restaurant meals, telephone or utility installation at a temporary residence, storage, furniture rental and laundry assistance. Again, this depends on who you work with, but is something to look forward to in the event that you’re hit by an earthquake.

Since every company will offer slightly different coverage features, it’s important to ask as many questions as possible to ensure that you receive adequate coverage for your home. You don’t want an earthquake to hit only to find that you still have to come out of pocket for something aside from your deductible.