Considerations You Should Make About Earthquake Insurance
Be honest, how often do you think about the importance of earthquake insurance? We would be willing to bet that the majority of homeowners don't even know if they carry this protection or not. If you live in an area where these disasters are prevalent, this is an invaluable add-on that shouldn't be overlooked. Consider the following truths about this type of coverage and how it can help you guard your residence. If your current policy isn't working for you, it is time to make an adjustment. Take a minute to get a better understanding of the threats earthquakes pose to your residence and how you can protect against it.
What Does This Option Cover?
Standard earthquake coverage will likely include damage to your home or contents that result from this type of disaster. It may not include flooding as a result of a quake as well as other types of water damage.
Refer to your policy to get a better idea of the specific types of damage your add-on coverage will protect against. Keep it handy so you will be able to take action quickly if disaster strikes. Make sure you have enough coverage to look after the cost of rebuilding the dwelling as well as replacing damaged contents. Don't focus on market value, instead look to the replacement and reconstruction costs to make an informed decision. Also, if disaster does strike, be sure you are prepared to handle the claims process as damage from these types of disasters doesn't necessarily show up immediately. There could be additional structure damage that is hidden. You will want to buy according to your specific needs, so don't settle for a one-size-fits all option in order to save time during the buying process.
If you think these devastating disasters are limited to California, all you need to do is read reports of resent rumblings all around the country. The U.S. Geological Survey estimates 75 million Americans in 39 states are affected by potential damage. The Center for Earthquake Research and Information claims one takes place every 30 seconds. Therefore, this is definitely something for policyholders to think about when assessing their coverage and debating whether or not to strengthen their plans. Don't be like the approximately 88% of Californian homeowners that neglect this valuable protection. Before you decide to buy though, you should consider what is included and what isn't.
What is the Cost?
When it comes to the cost of this type of add-on, each company can really vary. It just depends on a few factors. It will cost less to insure a new home than it does to insure an old home. Brick homes will cost more to insure than wood homes, because wood homes resist disasters better than brick. You will also be graded on a scale of 1 to 5 in regards to the likelihood of damage in your area. The higher your rating the more it will cost you. The deductible of the policy can be very high as well. Usually the deductible ranges anywhere from 2 to 20 percent of the coverage limit of replacement. If you live in California check with your state insurance department. There may be some different rules and regulations that you need to follow.