An earthquake typically lasts no longer than 30 seconds. But in that time, the damage resulting from the seismic activity can be massive. And only a small percentage of homeowners actually purchase Earthquake insurance. According to some studies, only 10% of residents in CA, a high risk state for earthquakes, have this type of insurance. But that doesn’t mean that you should discount the need for an Earthquake insurance policy. Homeowner policies and Umbrella policies often exclude damage resulting from an earthquake. Which leaves the homeowner responsible for repairing or rebuilding the home, replacing damaged property, and covering temporary housing expenses while these repairs are made. Regardless of whether you live in an area which is considered a high risk for earthquakes, if you’re a homeowner or condo owner or a renter then you should consider purchasing Earthquake insurance. Most homeowners don’t have a full understanding of this type of insurance. Some of the common misconceptions are below:
- “I don’t live in California or on a fault line or in a region with frequent seismic activity so I don’t need to purchase Earthquake insurance”: Earthquake insurance is available countrywide for a reason. Earthquakes can occur in even low risk areas. And the damage to your home from just one seismic event can be significant. The good news is that if you live in a low risk area then your premiums for Earthquake insurance will be much more affordable compared to those living in a high risk area.
- “I have Homeowners insurance, so I don’t need to purchase Earthquake insurance”: Homeowner’s insurance policies specifically exclude damage resulting from earthquakes. They will, however, cover any damage from a fire that was started as a result of an earthquake.
- “If there is an earthquake where I live, I’ll simply rely on the Federal Emergency Management Agency (FEMA) to help me recover”: Government assistance programs, like FEMA, are designed to provide short-term relief for those recovering from a natural disaster. FEMA, the Red Cross, and other similar services can provide temporary food and shelter to those in need. They aren’t, however, designed to pay for or reimburse property owners for the cost of repairing their homes or replacing their personal property.
Is Earthquake Insurance Expensive?
Many factors come into play when insurance companies calculate Earthquake insurance rates. Some of these considerations include whether you live in an area with a high risk of seismic activity, your property’s age and build, whether or not you have a basement, and how much coverage you decide to purchase. The best way to find out what your premium will be is to ask a licensed agent in our office to provide you with some quotes from several of the top insurance companies.
Get Your Earthquake Insurance Quote Today
Our licensed staff is ready to help you get multiple quotes for your Earthquake insurance. Because we’re an independent insurance agent we can shop from multiple insurance companies to help you find the right coverage at the right price.