EARTHQUAKE Insurance Policy
If you live in an earthquake prone area, including California, you typically need a separate insurance policy to cover damages. From structural damage to personal item loss, earthquake insurance has its benefits and limits. Earthquake insurance helps your family and home remain safe in times of disaster.
Do You Really Need It?
Many regions have regular earthquakes. Along the "Ring of Fire", essentially encompassing the entire circumference of the Pacific Ocean, earthquakes are frequent and potentially damaging. If you live along this area, or a region that has an earthquake history, you should consider earthquake insurance.
What It Covers
Each policy is unique, especially regarding owning or renting a home. A homeowner needs to cover the structure, as well as the belongings inside. Renters, in contrast, simply cover their belongings. Some policies even pay out to cover hotel expenses in the event that a building needs substantial work.
If you have homeowners insurance, most companies offer a rider for earthquake coverage. Alternatively, you can opt for individual policies, especially if you are a renter. No other insurance covers earthquake damage. If you have a homeowners policy, and your foundation cracks during an earthquake, the insurance will not cover the damage.
Keep Your Costs Down
Certain construction features help you save money on earthquake coverage. Wood frame houses, for example, flex with earthquake movement. These structures have lower policy premiums based on their resistance to earthquake damage. It might be helpful to understand if your home has a retrofit system, such as specialized bolting to the foundation. Insurance policies are often discounted when they have modern technology applied for earthquake-resistance.
Earthquake coverage keeps your assets and family covered in the event of a disaster. Depending on the strength, earthquakes can easily crack and warp structures, making them unsafe. You must protect your family and belongings with a strong policy that takes many factors into consideration. A basic earthquake policy takes the stress out of a disaster, if it ever occurs.