Earthquake Insurance

Earthquakes often cause tremendous damage to property and homes. This can be devastating when you discover your homeowners insurance doesn’t pay for this damage. If you have not specifically added earthquake insurance to your policy, then the damage is most likely not covered. If you live in an area prone to earthquakes, then you should consider earthquake coverage.

What is my Risk?

The main reason homeowners ignore earthquake coverage is because they believe they are not at risk. This form of insurance is not a necessity in every location. But homeowners should speak with an insurance company to discuss the risk. Maybe you’re located on a fault line or in an area that does have more earthquakes than usual.

Earthquake insurance is slightly different from other types of coverage. The value of the home, the value of the possessions, the current financial situation, and the likelihood of a catastrophic earthquake are all things that affect the amount of coverage. Instead of trying to insure the entire house and property, the policyholder must decide how much financial assistance they want. Policies with a low deductible have higher premiums, but lower coverage.

Coverage and Exclusions

Earthquake insurance covers things such as structural damage, possessions in the home and the property. However, coverage for personal possessions is set at a specific amount. A policy might not cover expensive items such as weapons, furs, jewelry and collectibles. Coverage for those items requires a rider. If the earthquake causes another disaster, such as a tsunami, then the damage from the second disaster is not covered.

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