If a seismic event occurs, earthquake insurance is the kind of property insurance that will assist and protect you financially from damage inflicted upon your property. The majority of normal homeowners’ insurance won’t cover these losses, so it is essential to look into this kind of coverage.
Most insurance policies for earthquake have high deductibles. This helps to keep the policy premiums down a bit and is usually most useful if the entire home is destroyed, as opposed to the possibility of the home being only partially or less dramatically damaged. The rates you will pay strongly depend on your location and the probability of earthquake activity. It is important to note homes constructed of wood generally have less expensive rates due to the fact that wood withstands earthquakes better than brick structures do. However, keep in mind that you don’t need to live near a fault line to benefit from this kind of insurance. An ideal policy would cover the expense to replace or repair your damaged property.
When investigating this kind of a policy, it is helpful to consider if there are other structures on your property that could be covered by the policy. Examples might be garages, sheds, barns, etc. Investigate whether the policy covers the contents of your home and if it will provide compensation for living expenses should your home be destroyed or unlivable during repairs. Know what the deductible is before the insurance kicks in and find out if the coverage has any exclusions or limitations. Contact us today so we can assist you in determining answers to these questions.
If your home were to be lost in a fire or a tornado, a normal policy will provide coverage for replacement up to a certain amount, usually 50 to 70% of the value of the items lost. Earthquake policies are different in that they will only replace a small portion of possessions to a predetermined set amount, maybe $4,000 or $5,000 in many cases. This is because the probability of losing everything is slim in an earthquake. Usually it is the fragile items, such as TVs and other fragile items that are destroyed. We are standing by now to help you in making your policy decisions. Call us today for more information.