Protect Your Home with Earthquake Insurance
Standard insurance provides coverage for just about any type of damage a home can experience. But if you want earthquake coverage, you’ll need to buy earthquake insurance. So if you have standard homeowner’s insurance, don’t make the mistake of thinking earthquake damage is covered. It’s not!
Your chances of experiencing an earthquake depend on where you live. An earthquake can occur anywhere, but they’re most common in locations such as California. Because of this, some insurers don’t offer earthquake insurance in certain areas. Also, since very few people feel they need it, it’s not a commonly purchased type of coverage. But if you do live in an earthquake-prone area, earthquake insurance is a must.
Note that the deductible for earthquake insurance is a percentage of the limit of your policy. If you have a $400,000 policy and the deductible is 15 percent, then you’ll have to pay $60,000 when you file a claim. And rates vary based on where you live and the condition of your home.
As for your personal belongings, earthquake insurance will compensate you for a fixed amount. A policy might offer between $4,000 and $5,000 for damaged belongings, and no more. The policy will also compensate you for property damage, but it must be the direct result of the earthquake.