Earthquake insurance coverage is for those who live in areas in which property damage is likely to occur in the event of seismic activity. These policies generally offer only limited coverage for such events and therefore it is highly suggested that you familiarize yourself with all the details of intended policy coverage.
Many decide upon the kind of coverage that can contribute to the costs of rebuilding should the house be destroyed in a shaker of disastrous proportions. Of course, one’s premium costs are directly related to the region in which the property is situated. Insurance companies will charge more if your home is, for example, closer to a fault line.
Who is earthquake coverage meant for?
It has been determined that close to 75 million Americans from 39 different states are likely to experience an earthquake that could, at the least, cause some property damage. It is recommended for most homeowners even if they don’t specifically reside in areas known for frequent seismic activity.
What does this kind of insurance cover?
Earthquake insurance generally covers any significant damage to one’s dwelling and any costs for replacement of lost or damaged contents within. Be it a damaged foundation under the house, broken windows or your favorite rocking chair and desk, insurance is meant to keep you covered in the event of property damage. It is important to note that the vast majority of policies won’t cover such things as damage to your front yard retaining wall or a cracked and leaky pool. Also, separate structures on one’s property will not be covered with most policies. Many policies provide help with rent money for temporary housing while your home is undergoing repair made necessary due to a trembler. There are other limitations, such as antiques or china not being covered in most policies. It is important to be very familiar with your policy so as to avoid any unpleasant surprises in the event of a quake. However, one can choose to purchase additional coverage for specified additional items via what is referred to as a “personal articles floater.”
What are some advantages in having earthquake insurance?
Though huge numbers of home owners in areas prone to seismic events decide not to buy earthquake insurance, it would be so incredibly valuable if a damaging earthquake were to occur. Should a homeowner live in what the Federal Emergency Management Agency (FEMA) deems a high risk location, assistance provided could be limited in the aftermath of an earthquake. Despite these exceptions that one should be cognizant of, earthquake insurance can otherwise give you comprehensive coverage for an earthquake.
Though earthquakes are not all that common relative to other risks, when they do occur they can be most devastating and expensive to homeowners. Homeowner policies will not cover earthquakes by default, so every property owner should seriously investigate acquiring earthquake coverage as soon as possible.