Earthquake Insurance

Earthquake Insurance Policies

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Many home and business owners assume that they will be covered in the event of a natural disaster such as an earthquake, but that is not always the case. In fact, the vast majority of property policies specifically state that they do not cover damage from earthquakes. If you are not sure what your current policy covers, then you might want to reconsider earthquake insurance for your home or business.


Do I Need It?

The number one reason that families do not seek out this type of coverage is because they believe they won't experience a catastrophic earthquake. Earthquakes do take place at a much higher rate in states such as California, but 39 states have had significant earthquakes in the last few decades. For those that are not covered, an earthquake could result in years of financial hardship. All home and business owners will need to weigh the pros and cons of this form of coverage and determine how likely it is that they will experience an earthquake.


Basic Coverage

Just as with all other forms of insurance, every policy is slightly different due to one's location and their provider. Most earthquake insurance policies will provide financial assistance after one's property has been damaged due to “contractions of the earth” and the natural movements of land that will follow. This includes landslides, mudflows, and any other changes to the ground. These policies typically do not cover water damage that takes place from tidal waves or floods that were caused by earthquakes.


Understanding Your Policy

The majority of these policies have a deductible that is much higher than other forms of insurance, and this is because the premiums are much lower and the total damage can be incredibly high. Homeowners can expect deductibles of around 15 percent, but those that would like lower deductibles can pay higher premiums. In the event of an earthquake, these policies will provide a family with the financial resources they need to find a temporary living space, repair their home, and replace some of the items in their home.




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