Earthquake Insurance Basics - Don't Over Think It, Just Get it...
When we have the major Earthquake experts are warning us about, will you be left holding an Earthquake Insurance Policy or your unpaid mortgage?
Standard homeowners and renters insurance does not cover earthquake damage. Earthquake coverage is available in the form of a separate policy or an endorsement from most private insurers.
A homeowners or renters policy will, however, generally cover losses from fire following a quake. If the fire makes the home unlivable, there may also be coverage for additional living expenses should it be necessary to live away from your home while it is being repaired.
Earthquake insurance is, of course, important to have if you live near a fault line. But keep in mind that earthquakes can also have widespread impact, affecting areas far from major fault lines. If your house is at any risk from quake-related shaking, damage to foundations, wall collapses and contents could result and you may want to consider buying an earthquake insurance policy.
Cars and other vehicles are covered for earthquake damage under the optional comprehensive part of an auto insurance policy.
Rates for earthquake insurance can vary significantly—from relatively high in earthquake-prone areas to fairly inexpensive in lower risk areas. Many earthquake insurance plans have higher deductibles than standard homeowners or renters insurance. A deductible is that portion of a claim that the policyholder pays out-of-pocket. Earthquake deductibles are usually from 5 to 20 percent of the policy limit.
You should ask yourself the following questions when considering whether you need earthquake coverage:
- Can I afford the cost of rebuilding or repairing my home if it damaged as the result of an earthquake?
- Can I replace my personal belongings if they are damaged as the result of an earthquake?
- Can I pay for temporary housing and other expenses if an earthquake causes structural damage to my home or makes it uninhabitable?
If the answer is no, then you may want to consider getting earthquake insurance. To find out whether earthquake insurance is available in your area, contact us at Fox Insurance Agency. If you are thinking about buying a home in an earthquake-prone location, first look into the cost of insurance coverage as this will provide a broader financial picture of the true cost of owning that home.
Fox Insurance Agency
At Fox Insurance, we proudly serve Oregon, Washington, California, Arizona, Texas, and Nevada. Whatever your needs, we would be happy to help you find just the right policy to meet them. As an independent agency, we are able to provide quotes from more than one insurance company. We work only with highly recognizable, reputable insurers.
If you are interested in an earthquake insurance policy, and live in Oregon or Washington State, contact us today. We would be happy to help you find the right policy for you and your family!
The information in this article was obtained from various sources and is not all inclusive regarding the subject matter. This content is offered for educational purposes only and does not represent contractual agreements, nor is it intended to replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. The definitions, terms and coverage in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied. Content provided by Insurance Information Institute.