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Everything You Need to Know About Acquiring Earthquake Insurance

Many states in America are vulnerable to earthquakes. What’s most challenging about these natural disasters is the fact that they’re so unpredictable–we know that they will happen, but there’s no way to tell exactly when.

 

This is why in many earthquake-prone states, it makes sense to consider earthquake insurance to help pay for some of your losses. However, many homeowners are clueless about this type of insurance and how to go about getting it.

 

Fortunately, we have a quick guide to help you understand more about earthquake insurance.

 

Who Can Benefit From an Earthquake Insurance?

 

Unlike other types of insurance, earthquake insurance is not mandatory. Although the majority of the United States can experience an earthquake, some states are more prone than others.

 

If you live in earthquake-prone areas, earthquake coverage is a must. The U.S. Geological Survey is a great resource to track your location’s tremor timeline so you can see exactly how prone your state is.

 

Of course, just one earthquake can lead to devastating losses of your home and property. Reparation can be pricey, but with earthquake insurance coverage, that price point is made affordable.

 

 

What’s Covered Under an Earthquake Insurance Policy?

 

It pays for:

 

  • All repairs to your property and attached structures, such as the garage
  • Personal belongings such as clothes and home furniture
  • Additional Living Expenses (ALE) when you need to evacuate and live somewhere else like a hotel

 

It doesn’t pay for:

 

  • Damaged vehicles–your auto insurance takes care of that.
  • Flood damage–even if the flood is caused by an earthquake.
  • Fire damage–this is already covered by your home insurance.

 

This is just the standard coverage that comes with this type of insurance. However, there are other optional parts of earthquake coverage that you can avail, such as land restoration, emergency repairs, and more.

 

Where to Buy Earthquake Insurance

 

If you are looking for earthquake insurance, a good place to start is with your renters or homeowners insurance provider. Before you request an earthquake insurance quote, clarify whether the provider offers an add-on to your current package or a standalone earthquake policy.

 

In some states like California, insurance companies are mandated by the law to also provide earthquake coverage.

 

On top of your insurance for earthquakes, it might also be a good idea to get personal umbrella insurance to help pick up the extra costs that your insurance doesn’t cover.

 

How Much Does Quake Insurance Cost?

 

Statewide, the average cost of earthquake insurance is $800 per year. In California, insuring a single-family home can range from $2.50 to $5.50 per thousand dollars of coverage. This means for a $500,000 coverage, expect to pay around $1,200 to $2700 (this price may vary depending on where you live in California).

 

As you might expect, the closer you live to a fault line in California, the more expensive your premiums will be.

 

 

Talk to an Earthquake Insurance Provider Now

 

Finding the earthquake insurance that best fits your needs shouldn’t be that hard, especially if you are living in earthquake-prone areas. As a final piece of advice, make sure to always review your policy with your provider. Be sure to ask what is and what isn’t covered, and ask if there are add-ons that can fill any gaps that your baseline insurance doesn’t cover.