Natural catastrophes such as earthquakes, floods, and landslides are not covered by standard homeowners insurance policies. Thus, only if you have purchased separate earthquake insurance is your home protected from earthquake damage. Earthquake insurance coverage is available in the form of a separate policy or an endorsement to an existing homeowners or renters insurance policy.
Earthquake insurance protects your personal property against damage from an earthquake. It covers the costs of removing debris, stabilizing the land under your home, and upgrading building codes. It also pays for extra living expenses you may have while your home is being rebuilt or repaired.
Who Needs Earthquake Insurance
Whether you should consider purchasing earthquake insurance depends on several factors. One is if you live in an earthquake-prone area and as the 2018 Long-term National Seismic Hazard Map shows, nearly half of Americans are exposed to potentially damaging earthquakes. The 16 states with the highest risk are Alaska, Arkansas, California, Hawaii, Idaho, Illinois, Kentucky, Missouri, Montana, Nevada, Oregon, South Carolina, Tennessee, Utah, Washington, and Wyoming.
Another factor you should consider is whether your home is built to withstand an earthquake. Brick homes, wood-frame homes with crawl spaces, and multi-story homes are more likely to be damaged in an earthquake. A qualified engineer can help you assess your home’s risk for earthquake damage. Some additional questions you should ask yourself to decide if you need earthquake insurance are:
- Can you afford to rebuild or repair your home if it is damaged by a quake?
- Can you replace your personal belongings if they are damaged or destroyed by a quake?
- Can you afford to pay for temporary living expenses if an earthquake makes your home uninhabitable?
What Earthquake Insurance doesn’t Cover?
Some exclusions in your earthquake insurance are the following:
- Fire: Earthquake insurance doesn't cover fire damage to your home even if the fire started because of an earthquake. In this case, your homeowners insurance would cover your losses.
- Land: Earthquake insurance doesn’t cover the costs to fill in large cracks or holes that appear in your yard after a quake.
- Vehicles: Earthquake insurance does not cover damage to your automobiles.
- External Water Damage: Water damage from external causes is not covered by earthquake insurance. For example, if you live near a lake and your home gets flooded as a result of an earthquake, earthquake insurance will not cover the cost of repairs. Your property will be covered for that damage if you have flood insurance.
Why Choose Findalowrate?
Earthquakes can strike any location at any time without prior notice. Findalowrate offers a variety of coverage options of earthquake insurance to protect your home and future.
