Earthquake Insurance, Explained – ValuePenguin
Earthquake insurance covers damage to your home, personal belongings, and additional living expenses if you need to temporarily live elsewhere after an earthquake. Standard homeowners and renters insurance policies typically don’t include earthquake coverage, but you can add it to an existing homeowners insurance policy as an endorsement or purchase it as a separate policy.
earthquakes occur when a movement in the earth’s crust causes a sudden and violent shaking of the ground. Approximately 200,000 earthquakes occur each year, and they are generally concentrated in 42 states, according to the us. uu. geological survey. Most earthquakes are small and cause little or no damage, but others can be catastrophic.
Depending on where you live, it may be a good idea to purchase this type of coverage.
cost of earthquake insurance
The cost of earthquake insurance will vary based on factors such as the price of your home and the risk of the area in which you live. In some high-risk regions, the cost of earthquake insurance can exceed the cost of a homeowners insurance policy. . California is one of the most expensive states for earthquake insurance as it is on multiple dangerous fault lines.
other factors that affect the cost of earthquake insurance
Other factors that can affect the cost of earthquake insurance outside of geography and home value include:
Homeowners can remodel their homes to give you more protection and save on insurance costs. For example, you can bolt your house to the foundation, reinforce the chimney and water heater, install automatic gas shut-off valves, and use plywood to strengthen damaged walls. These methods can stabilize your home so it is less likely to be seriously damaged in an earthquake.
determine if earthquake insurance is worth it
when thinking about whether you need earthquake insurance:
1. Check to see if your homeowners insurance covers earthquake damage. Most homeowners insurance policies don’t extend to earthquakes, but if they do, there’s no need to buy additional insurance.
2. Check if you live in a high-risk area for earthquakes.
There are 42 states at risk for earthquakes, and 16 are considered high risk. but keep in mind: tremors can be felt miles away from the epicenter. So even if you don’t live in a high-risk area, your home could still be damaged by an earthquake.
states with higher risk of earthquakes
3. consider how you would rebuild your life after an earthquake.
Ask yourself these questions:
what does earthquake insurance cover?
There are three main components to earthquake coverage: damage to your home (referred to as “dwelling” in policies), personal property, and additional living expenses (ale).
earthquake insurance may exclude certain items, such as your vehicles, fences, swimming pools, and collectible items in your home. damage to your land, such as landscaping, is also generally not covered. however, some policies include “engineering cost” options, which would cover these items.
another important earthquake insurance exclusion is external water damage. Floods and tsunamis are common results of earthquakes, but their damage is not covered by earthquake insurance. A flood insurance policy would cover both events, as well as damage caused by a sewer or drain from an earthquake.
how earthquake insurance and claims work
The cost of earthquake insurance varies with each policy and insured. earthquake insurance generally covers your home up to the same limit as your property insurance, and policyholders pay a 10% to 20% deductible of that limit .
To file an earthquake insurance claim, call your insurance provider and report visible damage. It can be difficult to assess, so it might be worth doing a home inspection, especially if your house is older.