Some parts of the country are more prone to earthquakes than others. An earthquake may not be covered by traditional home and business insurance policies. As such, earthquake insurance is added as supplementary coverage.
Who should get a policy?
Any homeowner or business owner who lives in an area that is likely to experience an earthquake should get a policy. It will provide protection in the event that there is an earthquake, regardless of how it measures on the Richter scale.
What’s included in a policy?
If you decide to get earthquake insurance, you can be sure that the building damaged by the earthquake would be covered. The damages may involve total destruction or a small amount of repairs. Either way, it would be possible to file a claim in order for the insurance to take care of the expenses.
It is cheaper to pay the premiums for insurance than to be financially responsible for repairing a home or building or even rebuilding it from the ground up.
How It Works
You will choose how much coverage you want on your home or business based on replacement value. Your zip code will be a factor to determine the likelihood of earthquakes in the area. Areas where there is more activity will likely result in higher insurance premiums.
It is also possible to include various riders for this type of insurance. Riders are add-on forms of coverage for other scenarios. For example, there is the option of a high-value rider so that if you have a large amount of high-valued items, you can have the extra coverage. The number of riders available can vary based on the insurance company you ultimately decide to get your policy from.
Ultimately, if earthquakes exist in your area, this is a form of insurance you will want to have.