Earthquakes are catastrophic events that can destroy property and leave many injured–here is what you need to know about earthquake insurance.
How earthquakes occur.
The surface of the earth is made up of giant land masses called tectonic plates which rest on top of the planet’s crust. Due to the convection currents of the mantle, these plates move slowly across the surface and rub up against each other. When two or more plates collide or separate, it creates vast amounts of energy, which propagates through the land. We feel this effect as an earthquake.
What homeowners insurance does not cover.
Homeowners insurance does not cover earthquake-related damages. If your home is destroyed or damaged by an earthquake and you do not have earthquake insurance, you are likely going to have to pay out-of-pocket.
All policies have exclusions, and earthquake insurance is no exception. It does not cover damage to vehicles, the land around a home, or anything covered by a homeowners insurance policy.
What earthquake insurance covers.
Finding an earthquake insurance that is right for you depends on a few variables. What are these variables? One is the total cost it will take to completely rebuild your home and replace some of your belongings. It can cover things like furniture, musical instruments, clothing, medicine, and food. It also depends on the location of your home, and that region’s risk for earthquake damage.
With the addition of “Loss of Use Coverage,” you may be eligible to receive $100,000 in coverage without paying a deductible.