Earthquake Insurance

Earthquake Insurance Protection

Earthquake insurance coverage is not standard to homeowners’ policies and many do not yet realize that in the case of seismic activity they’re not insured. Many erroneously believe that they don’t need it. However the US Geological Survey reminds us that earthquakes pose a significant risk in almost 40 states, but only those residing in the most earthquake prone regions, like California, Nevada, Oregon, for example, have easy access to earthquake coverage policies.
Earthquake insurance is designed for homeowners who reside in places where there is a higher than average risk of losing home and property to a severe temblor. A home is forever lost in some cases unless one has purchased the appropriate policy. Many insurance providers would like to work with homeowners to include this coverage under a traditional homeowners’ policy, yet there are regulations that dictate certain parameters.
Earthquake insurance functions by protecting one’s home from loss resulting from a big quake. As a result of a major quake being less likely of occurring with any frequency as compared with other natural disasters, deductibles for quake insurance are higher than normal, sometimes as much as 15%. Keep in mind, though, that the deductible relates to the amount of coverage, not the cost of damage caused.
Many homeowners make the mistake of being under insured when it comes to earthquake coverage with a surprising average gap of 18% of what policyholders are covered for and what the actual extent of damage experienced is.
A big benefit of earthquake insurance is the peace of mind that homeowners can enjoy in knowing that their home and finances are protected from such a major disaster. Speak with your insurance professional today for the whole story on good earthquake insurance coverage.