Why You Should Consider Earthquake Insurance

Why You Should Consider Earthquake Insurance

When you sign off on your home insurance policy there is a sheet of paper that you have to sign as proof you understand you don’t have coverage for two things: earthquakes and floods. Do you have earthquake insurance? Just as that piece of paper states, home insurance wouldn’t cover you if an earthquake caused damage so it’s worth getting a quote for earthquake insurance for your home. While in areas like California it may be very expensive, those of us in the Northeast would probably be surprised as how affordable it is.

You are probably thinking “an earthquake isn’t going to hit my area”, but the fact is the weather is becoming more and more unpredictable. Earthquakes have hit Massachusetts and Connecticut already in 2015. They have been very small and didn’t cause damage, but its proof they can happen. As any California resident would tell you: if a powerful earthquake hits, you are going to want to have the coverage you need to repair and replace your home and belongings.

After learning all of that above, let’s think about this. You can get earthquake insurance coverage for your home at an affordable price and not have to worry about the “what if” or you could continue to take the risk. Insurance is all about covering you when it comes to the “what ifs” of life. Why not at least call your agent and see just how much it would cost a year to be able to check off one less thing to worry about on your (presumably pretty long) list?

 

If you still have questions about how earthquake coverage works, what it covers, etc. we have some helpful information for you below. Of course, you can always call our experts for help at 888.865.1244 with your questions or for a quote as well.

• Does Your Home Insurance Cover Any Earthquake Insurance?
• What Does Earthquake Insurance Cover?
• When is the Best Time to Buy It?
• Are Earthquake Insurance and an Earthquake Endorsement on My Home Insurance the Same Thing?
• Is There a Binding Period, Like With Flood Insurance?

 

Does Your Home Insurance Cover Any Earthquake Insurance?

As we mentioned above the damage to your home and belongings an earthquake could cause would not be covered under your homeowners insurance policy. The potential exception is that if an earthquake causes a fire, as they have been known to occasionally do, your home insurance would cover the fire damage.

What Does Earthquake Insurance Cover?

Most earthquake insurance covers not just earthquakes, but property damage and loss due to “earth movement” which can include: mudslides, sinkholes, and mudflows as well. The coverage is typically split into two parts: structure of the home and contents (possessions). With both coverage options on your policy, damage caused by earth movement to both would be covered. There are some exceptions to what earthquake insurance covers, such as: fires, land, vehicles, water damage, brick veneer, and of course, existing damage.

When is the Best Time to Buy It?

Due to the unpredictable nature of earthquakes, you can never really know when one will damage your home. If you are worried, one thing you could do is some research on “fault lines” near you. These could help indicate a future earthquake and if there are fault lines by your home your risk is higher so it would be even more important for you to have the earthquake endorsement on your policy. The most unpredictable part of an earthquake is the size of it. This is the best indicator of the extent of damage it could cause and unfortunately there is no way to predict that.

Are Earthquake Insurance and an Earthquake Endorsement on My Home Insurance the Same Thing?

You will hear the terms used interchangeably because sometimes it is a standalone insurance policy and other times earthquake insurance can just be added, as an endorsement, to your home insurance.

Is There a Binding Period, Like With Flood Insurance?

No, coverage can be added immediately, unlike when you have to wait 30 days for flood insurance. They only time this is not true is immediately following an actual sustained event then a restriction would be placed on binding coverage, all dependent on the size of the event.

More questions? As we said above, our staff is always here to answer your questions and concerns. Give them a call at 888.865.1244 and they can help you decide if you need an earthquake policy and if you do, the right coverage for you.

Read More