Every homeowner needs Earthquake Insurance. Standard homeowners' insurance does not cover damage caused by earthquakes or landslides. If an earthquake strikes, most properties will sustain damage that is less than their insurance deductibles.
This means that even with high insurance rates, insured homeowners will not get money from their policy to repair the damage from an earthquake. If you live in an earthquake-prone area, read on to figure out how to get insurance for your property.
Earthquakes In The US
Earthquakes will inevitably occur, but we do not know when they will hit. However, we are aware that they can do significant harm to your home and possessions. Thus, forcing you to leave your home while being restored or rebuilt.
Earthquakes are more common in some parts of the midwestern and eastern United States than others. Charleston, South Carolina, eastern Massachusetts, the St. Lawrence River basin, and the middle Mississippi River Valley are among the most earthquake-prone places.
Each year, 16 significant earthquakes with magnitudes of 7 or greater strike Southern California, Alaska, and Eastern Massachusetts. Moreover, natural calamities such as earthquakes, floods, and landslides are not covered by homeowners, renters, or condominium insurance plans.
Types Of Earthquake Insurance
Before signing up for an earthquake preparedness insurance plan, it's important to know the different types of insurance that you could look into.
Traditional Insurance
This sort of insurance covers earthquake damage by covering "pure loss," which means they will estimate the value of the objects lost and reimburse you for that amount — which will vary depending on the individual.
Parametric Insurance
This is a relatively new way of insuring policyholders against certain events by determining the cost of damage using parameters, which are defined conditions that apply to everyone. Payments are made if particular contract parameters are met; for example, when an earthquake meets or surpasses a certain ground shake intensity, a third party verifies them.
Frequently Asked Questions
It's normal to have questions about earthquake insurance; here are a few of our answers to such queries.
What Does Earthquake Insurance Cover?
Dwelling, personal property, and additional living expenses are the three basic components of earthquake coverage. Certain goods in your home, such as your automobiles, fence, pool, and collectibles, however, may be excluded from this insurance.
Additionally, landscaping and other types of damage to your property are usually not covered. Some policies, however, include "engineering cost" options that would cover such costs
Is earthquake insurance a waste of money?
Aside from price and expense, there aren't many disadvantages to earthquake insurance. In states where there is more danger, it may be more expensive. Based on the amount of danger, you must assess whether you can afford to pay for quake losses or if you require insurance assistance.
What does a basic earthquake insurance policy cover?
It protects your home, goods, and other structures on your property from some of the losses and damage that earthquakes can bring. If you own a home, you need homeowners insurance. You do not, however, need to purchase this type of insurance.
Should renters get one?
You are normally not required to purchase this as a renter. However, obtaining it may be a good idea, depending on the chance of an earthquake where you reside. Earthquakes can inflict a lot of harm to your possessions.
Being prepared is always a great idea, especially when natural disasters are very hard to control. Explore how you can start insuring your home or property with Stampede Insurance. Make a safe and smart choice by getting a quote from our professionals today!
Let one of our California earthquake specialists help you shop from our many insurance plans to find you the right policy and coverage- just fill out our quote form or call us at (888) 476-0696 and we'll contact you shortly.
