Earthquakes are powerful natural disasters. They can shatter the ground and shake up large structures. This amount of power can bring about huge amounts of damage. If you live in an area close to a fault line, you may be concerned about protecting your home.
Having the right insurance can financially cover your assets in the case of an earthquake. To help you understand the basics of earthquake insurance, here are the most important facts to know:
Deductibles are different for earthquake insurance
A deductible is the amount you pay out-of-pocket for damages before insurance coverage. While all policies are different, the deductibles for earthquake insurance policies tend to be higher than standard homeowners insurance.
It’s common for earthquake insurance to have different deductible amounts for different categories of coverage. For example, you may have different deductibles for structural damage, personal items and other structures on your land.
Coverages
Earthquake insurance offers dwelling coverage, personal property coverage and temporary housing. Structural damage is a major risk of earthquakes, but in some extreme cases your belongings may also be damaged beyond repair. Some policies will either replace or reimburse you for a percentage of the item’s value.
If you cannot stay in your home as repairs are being made, your insurance can help you pay for temporary lodging at a hotel or short-term rental.
Earthquake insurance exclusions
Not all damages occurring during an earthquake are covered under earthquake insurance. For example, your car may become damaged during an earthquake. This would be covered by your auto insurance rather than your homeowners insurance.
Some other common items excluded from earthquake coverage include:
- Personal landscaping.
- Satellite antennas.
- Structures found underground outside the property walls. This can include pipes, drains, wiring and more.
There are several ways to minimize the damages of an earthquake on your property. One best practice is to bolt heavy furniture items like bookcases to the walls to prevent them from falling. Securing other large furniture items, including those outside, is an excellent way to mitigate possible damage to your property and the items themselves.
If you live in an area close to a fault line, you may be more likely to experience an earthquake. To find out how much coverage you need, consult a local insurance provider for details on how to better protect your home and belongings.