Earthquake Insurance Policies
You need to purchase earthquake insurance if you want insurance coverage for earthquake damage. Contrary to popular belief, traditional homeowner's or renter's insurance does not cover damage caused by earthquakes. The most horrible time to discover this is following an accident, when you need your insurance most.
There are several things to consider before deciding to buy this insurance. Your first concern should be whether a serious earthquake is likely to occur where you live. Earthquakes can happen in practically any part of the United States, but some locales are highly-prone to severe earthquakes – such as California.
If you do live in an area that is earthquake prone, then you need to decide how much damage an earthquake might cause your home. The type of home you have can affect the amount of damage. For example, some homes, such as brick and multi-story, are vulnerable to earthquake damage. You might need the help of a contractor to determine your home’s risk level.
You should also consider the financial consequences of major earthquake damage to your house. Would you be able to pay for repairs or relocation without financial help? Keep in mind that if you have a mortgage, then it does not disappear even if your home does. If the possible cost of earthquake damage is more than you can afford, then earthquake insurance is a good choice.
Earthquake insurance covers repairs for earthquake damage done to a home or building. It sometimes covers additional costs associated with not living in your home, such as hotel costs. The insurance does not cover damages to vehicles or land, even if caused by an earthquake. Damage due to fire or floods, even if caused by an earthquake, are not covered either. Those things should be covered by a homeowner's or renter’s insurance policy.
It is necessary to buy a separate insurance policy for earthquakes. It might also be possible to buy it as an endorsement on your homeowner's insurance. This is a written change to an existing policy that requires paying an additional premium. Check with your insurance agent for more details.
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