Info About Earthquake Insurance
Some places experience earthquakes more often than others. Take California for example. The legendary San Andreas Fault runs through California, and it was the origin of the 1906 San Francisco earthquake. It was one of the most devastating earthquakes in history. And it’s suspected that another such earthquake will soon occur in California again. That’s why earthquake insurance is highly recommended for some areas of the country.
Earthquake insurance is a specialized policy to safeguard against property loss or damage due to earthquakes. Depending on where you live, it may or may not be easy to obtain this coverage. But if you live in an area that rarely has earthquakes, the expense might not be worthwhile. As for coverage, the expense is determined primarily from the probability of major damage to your home. And the more at risk you are for an earthquake, the more expensive the policy.
Earthquake insurance helps cover the cost of repair or replacement of property and items destroyed in an earthquake. It will not cover losses associated with events like fire, floods, or storms.
If you live in an earthquake zone, then you can obtain coverage from various insurance providers. Your policy will likely cover structural damage and damage to personal property. The personal property coverage pays a specific amount for losses and not individual prices for specific possessions. This helps reduce costs for you and the insurance company.
The amount of your coverage is based on your property’s value. A $200,000 home will likely be covered for the entire amount. The deductible will be a percentage of the total coverage. You’ll have to pay the deductible before the insurance company issues any funds. So make sure you have an affordable deductible.
You can get “single-limit” coverage which covers the entire value of your home. And a standard policy offers what a homeowner’s policy covers, but with added protection from earthquakes. If you’re in an earthquake zone, then this earthquake insurance is worth having. You might have a high deductible, but it’s less then the cost of recovering from an earthquake without any financial help.