Earthquake Insurance

Most property insurance policies do not provide protection against the damages that earthquakes can cause. Everyone should consider the benefits of earthquake insurance.

With the protection of a traditional property insurance policy, the damage to the building and the contents would not be covered. The property owner would have to pay out of pocket to repair and replace anything damaged. Earthquake insurance through a separate policy or as a rider on your property or homeowner's policy, offers you an easy way to provide an additional layer of insurance protection that only comes into play when an earthquake strikes.

As with other insurance policies earthquake insurance has an annual deductible that you must pay before damages will be covered. Deductibles may be based on a percentage of the policy’s total limits, which can be a substantial amount and one that insureds must prepare for. Additionally, the policy will have limits that determine the maximum your policy will pay. Earthquake policy limits should be based on the cost to rebuild your building and not on the sale price or estimated value. Premium costs for your policy will be determined by evaluating many factors including your property’s location, date of construction and the construction materials.

Having earthquake insurance does not eliminate the need for flood insurance. For example, if an earthquake causes a tidal wave, which, in turn, creates flood conditions, that damage would only be covered by a flood insurance policy.