Many natural disasters are typically covered by standard home insurance, but earthquakes aren’t one of them. This is due to the fact that severe earthquakes are not a common occurrence and damage is usually minimal. The likelihood of a big shake is really dependent on whether you live in an area that is prone to them. Areas like California and Washington are at higher risk of experiencing a serious earthquake than most areas in New England and are more costly to insure.
Earthquake coverage is available on most home polices as an option.
A major difference between earthquake coverage and standard home insurance is the way you choose deductible amounts. Standard homeowner insurance policies offer a variety of deductible levels that are based on actual monetary amounts, such as $500 or $1,000.
Deductibles for earthquake policies are chosen as a percentage of the overall policy limit. If you have a home insured for $500,000 and you choose a deductible of 5% of the policy limit, it means you will be responsible for as much as $25,000. And, of course, the higher your deductible, the lower the cost for the coverage. Also, rates differ significantly depending on location.
Don’t let an earthquake shake up your residence. Contact one of our agents to learn how you can take advantage of an earthquake policy.
Secure the BEST