Earthquakes occur just about every year somewhere in the U.S. Although California is the most high-risk area, there are 42 other at-risk states. Some earthquakes are so slight that they are unnoticeable and result in no damage. But some earthquakes cause catastrophic damage. In most cases, your homeowners insurance will not cover earthquake damage. That means if you live in an area at risk for earthquakes, you need to purchase separate earthquake insurance coverage.
Do You Need Coverage?
Earthquakes can happen in any state, but some areas are at a higher risk. If you live in a high-risk area, particularly Los Angeles, then earthquake coverage is a wise investment. This coverage protects you if you need to replace belongings, repair or even rebuild your home following an earthquake.
What Does the Insurance Cover?
In the aftermath of an earthquake, this insurance will help with many expenses, including repairing or replacing your belongings, furniture, clothing, and electronics. You will receive financial assistance to repair your home and attached structures, such as a garage. Help might also be forthcoming should you need to relocate while your home is undergoing repairs.
Most earthquake insurance policies can be customized with additional coverage for emergency repairs, building code upgrades, and possibly more. You must discuss this with your insurance provider.
How Coverage Works
Most earthquake policies have a high deductible. Depending on the policy, the deductible may be 5%, 10%, or 20% of your coverage limit. In some cases, a policy might use separate deductibles for personal property and dwelling expenses.
In spite of the cost, earthquake coverage is highly recommended if you live in an earthquake zone, as the cost to repair earthquake damage can be astronomical. But even if there is only a small amount of damage, getting help for repairs is a good thing.
Your home probably represents your single largest investment and a single earthquake can wipe out years of work, hopes and dreams. It’s wise to protect it.