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Important Insights into Buying Earthquake Insurance

Apr 06, 2023

Home Insurance

Important Insights into Buying Earthquake Insurance

Home insurance does not cover earthquakes and related losses, so you may need to buy a separate policy to get reimbursed for such damage. However, who should buy earthquake insurance? Earthquake insurance is required for those living in states prone to earthquakes. For example, California is known for earthquakes, so people there might need one. Though you may need it, knowing the pros and cons of buying earthquake insurance is important to make an informed decision. Let us discuss them.

Determine the Risk of an Earthquake in Your Community

Before denying earthquake insurance, assess the risk of such damage in your state or city. The reason is most people don’t realize that they live in an earthquake-prone zone. So, determine the risk percentage and act accordingly.

Which US States Are Prone to Earthquake Damage?

The US Geological Survey reveals that out of 50 US states, 42 Central, Western, and Eastern United states are at risk of earthquakes. These include California, Arkansas, Hawaii, Kentucky, Utah, Illinois, South Carolina, Missouri, Oregon, Washington, etc.

Benefits of Buying Earthquake Insurance

Earthquake insurance will cover:

  • Property Damage – If an earthquake damages your property, you will be paid for repairing or rebuilding it.
  • Additional Living Expenses – If your home is uninhabitable after an earthquake, you will be covered for additional living expenses while your home is being repaired.

A standard earthquake insurance policy costs about $20 per month, which can be lower for those living in low-risk zones. You can increase your deductibles if you want to reduce your monthly payments.

Disadvantages of Buying Earthquake Insurance

Earthquake insurance does only have some cost-related downsides, including:

  • People living in high-risk zones may have to pay more. So, depending on the amount of risk in your community, you can decide whether you need earthquake insurance or can afford to repair the damages out of pocket.
  • The deductible for earthquake insurance is often high and calculated based on the percentage of the building coverage. For example, it can be 5% of the value of your home.

What Makes It Important to Buy Earthquake Insurance?

Besides the collapse of rock formations on the earth’s surface and volcanic eruptions causing earthquakes resulting from human activities, such as mining, fracking, and wastewater fluid injection into deep wells. So, despite where you live, you may need earthquake insurance to protect your investments and livelihood.

What Kind of Damages Does Earthquake Insurance Cover?

Earthquake insurance covers:

  • Partial or total property damage
  • Fire damage
  • Landslide/avalanche damage
  • Flood and water damage
  • Gas Leaks
  • Collapse
  • Explosions
  • Structural damages requiring repairs
  • Damage to other property and landscaping

Though earthquake insurance has pros and cons, you must decide whether you need it or not, depending on your risk. With insurance in place, you don’t need to worry about the losses or damage an earthquake can cause. Otherwise, you need to cover them out of pocket.

Cover Your Home Against Earthquakes with Fuller Insurance

At Fuller Insurance Agency, we offer comprehensive earthquake insurance to protect your home and personal belongings. So, you can live with peace of mind knowing your home is protected against earthquakes and resulting losses. Contact us today to get a quote.

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