What happens if your home is damaged in an earthquake? While you may think the risk is very low, 42 states are considered at risk for the almost 200,000 earthquakes that happen every year. Earthquake damage can be catastrophic. Even worse than losing everything you own is finding out that your standard homeowner’s insurance policy does not cover the damage.
Purchasing a standalone earthquake policy is a cost-effective way to protect your home in case of disaster. If you live in an at-risk area, this coverage may be the best decision you ever make.
Who Needs Earthquake Insurance?
While an earthquake can happen anywhere, some areas are at higher risk than others. The Western and South Central areas of the United States are prone to earthquakes and it usually makes sense to purchase earthquake coverage in these areas.
With earthquake coverage, you have the protection you need if your home or belongings are damaged or destroyed in an earthquake. Your policy can help you rebuild, repair, or replace most belongings and structures.
What It Covers
Earthquake coverage offers protection if your home or belongings are damaged or destroyed by an earthquake. The standard policy usually includes coverage for:
Home repairs and repairs to attached structures
Cost to rebuild your home if it’s destroyed
Living expenses if your home is uninhibitable while repairs or rebuilding is completed
You can choose additional coverage for land restoration, debris removal, emergency repair, code upgrades, and additional structures on the property.
How an Earthquake Policy Works
Earthquake insurance works differently than homeowner’s insurance. Every policy has a high deductible subtracted from a claim. Your deductible can be 5%, 10%, or 20% of the coverage limit. Depending on the coverage you choose, you may need to pay a separate deductible for your home and property. While these deductibles are high, they don’t compare to the cost of losing everything.
Do you live in an earthquake-prone region? Earthquake coverage is an affordable way to reduce your risk and ensure you can rebuild or repair your home if the unthinkable happens. Request a free quote for a personalized earthquake policy today.