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November 16, 2016

Should You Consider Earthquake Insurance?

EarthquakeEarthquakes can strike anywhere, without warning. Even if you don’t live in an area prone to earthquakes, that doesn’t mean an earthquake won’t strike.

Small tremors might result in shattered glass and broken shingles. Large earthquakes can cause massive destruction to even the most reinforced homes.

Many insurance companies offer earthquake insurance. But, you may ask why you need it? Doesn’t your home insurance policy cover damages?

Here are some facts to keep in mind when considering whether to buy earthquake insurance.

Earthquake Insurance Coverage

A standard homeowners insurance policy often does not cover earthquake damage. Earthquake insurance is often considered a supplement to your regular homeowners policy. Often, you need to buy earthquake insurance separately from a homeowners policy.

In some cases, it won’t cover losses that the homeowners policy already covers. For example, an earthquake may cause a fire in your home. Your homeowners policy will usually cover fire damage. Therefore, you will report this damage on your homeowners policy, not your earthquake policy.

Earthquake insurance will cover other costs. It may cover costs to help repair the home to meet local building codes. It could also cover debris removal and repairs that stabilize the house if the ground shifts.

Who Needs Earthquake Insurance?

Certain areas have much higher risks for earthquakes. Some places are close to fault lines, which are where the earth’s plates collide and can cause earthquakes. California and certain parts of the Midwest sit on active fault zones. The risk of earthquakes is much higher in these areas.

You can buy earthquake insurance in almost any area to cover property damage. In high-risk areas, it is usually a valuable protection to have. 

Yet, buying earthquake insurance in low-risk areas might be an extra cost that has little benefit. This is a consideration that homeowners must make when deciding what insurance to buy.

Cost of Earthquake Insurance

The cost of earthquake insurance can vary from place to place. High-risk areas generally have higher premiums, while low-risk areas have lower premiums. More factors like the location, size and age of your home may also come into play.

Adding earthquake insurance may be a way to add another level of coverage to your home. Deciding to buy it takes consideration and debate. If you have questions about California earthquake insurance, call JSW Insurance today at (925) 737-1560.

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