If you’re considering purchasing earthquake insurance, you need to know how much you’re going to need.

The amount of earthquake insurance coverage that you’re going to need is ultimately dependent in your situation. Insurance policies have “limits of coverage” that let you know the largest amount that will be spend to cover different kinds of losses. Policies may even have sublimits. Let’s say a policy could have a $50,000 limit for personal property, and only a $4,000 limit on computers. The insurance company would pay no more than $4,000 to replace your computers.

Insuring your home for its loan value or appraisal likely means you’ll have enough to pay back your lender, but likely not enough to rebuild your home—should it be destroyed. The dwelling coverage limit will be the same as your homeowners insurance policy and your earthquake insurance. If you don’t have enough home insurance, you likely don’t have enough earthquake insurance as well. It is not a bad idea to check your dwelling coverage every now and then to make sure it doesn’t drop below the cost to replace your home. If it drops below 80 percent of the full replacement cost, your insurance company may end up reducing the amount that it will pay for your claim.

Here are some questions you should ask to have a better understanding of your coverage:

• How much would it cost to completely rebuild your home, and how much of that can you pay out of pocket?
• How much would it cost to replace all of your destroyed personal belongings? (E.g., furniture, appliances, clothing, electronics, etc.)
• How much would it cost for you to find a temporary living arrangement if your home becomes uninhabitable?

Your regular homeowners insurance won’t cover for earthquakes, so it’s best to carry an earthquake insurance to prepare for the worst—especially if you live in a high risk area like Oregon. Contact Fox Insurance Agency for a quality and reliable earthquake insurance and home insurance in Beaverton, OR policy!