In several parts of the country, earthquake insurance is absolutely a must-have. It is a very specialized policy that homeowners may purchase (and in some cases are required to buy) in order to protect them from losses resulting from seismic activity. As certain areas are more prone to earthquakes than others, coverage is sometimes not easy to find in these certain areas- (you simply may not need it). But, with the seismic activity allegedly from “fracking” becoming more common, perhaps it is time that this is changed.
The cost of this kind of coverage is usually directly determined by the probability that a quake can cause major damage to your home. This type of insurance is different from a typical policy that covers personal belongings and real estate property, for example.
In many places, earthquake insurance is an absolute necessity. Without it, individuals, families and businesses could be put in financial peril. Before you purchase earthquake coverage, however, you should learn more about it. Below is an explanation of what it is, how it works and what kind of policy holders may benefit from this kind of coverage.
Earthquake insurance specifically provides help in paying for the cost of repairs or for the replacement of covered structures and items damaged or destroyed in an earthquake. Keep in mind that it does not cover losses associated with other events, like fire, floods, or wind storms. Earthquake insurance will generally have a large deductible amount that will vary depending on the coverage bought and, importantly, the location of the covered property.
An earthquake policy will usually protect against structural damage. This is the damage done to buildings and structures during an earthquake. After claims are filed, the insurance company will often then pay for a remodel to make the building safe and livable again. If the structural damage is beyond repair, the insurance company will then often pay for the demolition and reconstruction of the building.
Earthquake coverage can also help compensate you for other kinds of damage too. This can include protection from the destruction of other kinds of property, like automobiles and personal valuables. The policy can also disperse funds to help a family to relocate while their home is under repair.
Earthquake insurance coverage is obviously most advantageous for those who live or work near fault lines. It is a good idea to undertake some research to see how close you might live to a fault line as well as your region’s history of earthquakes. This will inform you as to if and how much insurance to obtain, Give us a call and we’ll be happy to help you in this endeavor.
Even if a trembler has not happened recently, there still remains great risk for homeowners and businesses in many areas around the country. By their very nature, earthquakes strike suddenly and without warning. The destruction produced can be catastrophic, both financially and in personal terms. Earthquake coverage can help you, your family or your business quickly get back on your proverbial feet rather than suffering from crushing financial hardship.