Ins And Outs Of Earthquake Insurance

Insurance Blog

You may think you don't need earthquake insurance where you live, but earthquakes are not uncommon in a large portion of the United States. If you live in an area with a history of earthquakes, then you may have been thinking about adding on earthquake insurance in case a large earthquake does substantial to your home. However, this type of insurance is different than other types of insurance, so you may want to consider some of the following things before talking to your insurance agent.

What is earthquake insurance?

Earthquake insurance is coverage for any damage from an earthquake to your home and possessions. It is available to anyone who owns a home or condominium, and it is even available to renters. Even though it is available to most people in the country, your company may not specifically write out an offer for it to you unless you live in California.

What does it cover?

Generally, it covers the structure of your home, out buildings, and your possessions up to a certain limit. If you feel your limit is inadequate, or you have a lot of things such as expensive electronics which may be easily damaged, then you can purchase additional insurance. You may also be covered for limited living expenses while your home is being repaired.

What doesn't it cover?

It doesn't cover damage to areas and amenities outside your home such as your vehicles, fences, or pools. It will also not cover you for earthquake-related flooding from outside sources such as a lake or river, but this type of damage may be covered by flood insurance. You also might not be compensated for earthquake-related fires unless you are in California. Some personal possessions, such as china and glasses, could also be excluded from coverage.

What other considerations are there?

You should also consider the age of your home and whether or not you can afford to rebuild it if it were substantially damaged. Houses made of certain material, are multiple stories, or built in an area which could be prone to liquefaction are usually more likely to be severely damaged during an earthquake. Another consideration is the additional cost of the insurance and the fact that the deductibles are usually much higher and the payout limits are lower than other types of homeowner's insurance.

You should talk to an insurance agent from a company like Insure With U.S. about earthquake insurance even if you don't think that your home is susceptible to earthquakes. If you know your area is at high risk, then it could be something that may benefit you in the future.

Share

11 November 2016

Understanding Insurance Policies

When I got married, I knew that there were a few things that I needed to learn about the way the world worked. For starters, I had to figure out how insurance worked since I wanted to make the most of my life without worrying about money. I started focusing on the policies that I had in place and gradually moved towards acquiring new life insurance and the like. Having each of these coverages helped give both me and my spouse peace of mind. We both knew if something happened to me that the other would be okay. Check out this blog to learn more about insurance needs.