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An In-Depth Look at Earthquake Insurance

Earthquakes are a devastating, often unpredictable natural catastrophe. They are capable of causing extreme damage to communities, however earthquake insurance can help cover you and prevent you from suffering a total loss. Here is a thorough overview of earthquake insurance.

Earthquakes are generally not covered under traditional home insurance policies. Depending on the state that you live in, preparing for an earthquake may not be a high priority such as in California. However, almost every state is at risk of an earthquake happening at some point. An earthquake can wipe out your home and personal belongings. Consider adding earthquake insurance through buying a separate policy or adding it as an endorsement to an existing policy.

  • Minimizing Risks

    Research the risks of an earthquake in your state. Insurance helps you protect your assets and prevents you from having to worry in the event of a disaster. If you fail to add earthquake insurance, you are at risk of losing everything if a disaster occurs. Research shows that over 100,000 earthquakes happen every year.

  • Geography

    If you are unfamiliar regarding the likelihood of an earthquake occurring in your area, research the frequency of damaging earthquakes map. This will help you find out exactly how close your fault line is to disaster. Contact the Insurance Information Institute to find out the actual risks in each part of the United States. You can also learn about the earthquake risks in your area. The Federal Emergency Management Agency also contains important, useful data.

  • Benefits of Earthquake Insurance

    If you have earthquake insurance, you are covered if your property is damaged. Earthquake insurance covers any repairs to your property and also has the ability to cover a full reconstruction of your home. If you are staying in a low-risk area, you will pay a lower premium compared to if you were staying in an area with a higher likelihood of earthquakes. If your home is totally destroyed, you can use additional living expenses coverage. This allows you to find another place to stay while your property is rebuilt. Without earthquake insurance, you’ll be responsible for paying for the repairs to your property and finding another place to stay.

  • Why Earthquake Insurance May Not Benefit You

    If you stay in a state where an earthquake is likely to occur, you may have to pay an expensive premium. It’s possible you may decide that the coverage is not worth it. Even if you have earthquake insurance, you’ll still have to pay a high deductible. Generally, the earthquake insurance deductible is around five to ten percent of the building’s insured value.

  • Earthquake Damage

    Earthquakes have the ability to destroy buildings, cause explosions, fires, gas leaks, avalanches, and tsunamis. Recent trends show that earthquakes are developing due to the injection of wastewater into deep wells that stimulate fault lines.

While it is tough to predict when an earthquake may occur, it’s important to be prepared for any situation. Earthquake insurance can prevent you from losing all of your assets. Our experts at CF&P Insurance Brokers will help you find coverage to minimize risks.

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