Earthquakes are one of the worst natural disasters of our world. They can level houses, demolish buildings, break glass, and even cause people to die. Unfortunately, some areas are more prone to earthquakes than others due to their location in relation to fault lines. For example, in the United States, the most prevalent earthquake-prone area is California. For those living in such areas, earthquake insurance is often a talking point among homeowners and even renters. To make a wise investment decision, homeowners should be educated about what this type of insurance policy is and how it can benefit them.
Earthquake insurance is a coverage policy that covers damage to the home in an event of an earthquake. This can include the home itself, belongings, and other buildings on the property. Unlike homeowners insurance, homeowners with a mortgage are not required to own an earthquake policy; however, regular homeowners insurance policies do not cover damage from earthquakes other than fire. An earthquake policy is also available to renters to cover damage to belongings and the expense of relocating while damage is being assessed and repaired.
There are several types of policies, all of which have limits to what they cover. The aim of this type of insurance is to help you with the cost of putting a roof over your head, so many policies will have a low limit of the amount you can collect for damage to belongings. Premiums will vary depending several criteria of each home: projected cost of rebuilding, land quality, age, number of stories, etc. Earthquake policies do not cover fire, flood, vehicle, or land damage. These are often included in the homeowners policy.
Earthquake policies work by assigning an insurance adjuster to each claim made by a policy holder. Claims should be made as soon as possible following damage. An inspection of the home is performed to assess damage, and policies are paid out according to the cost of repair.
Homeowners, renters, condominium owners, and mobile home owners all have these insurance policies available to them. People living along fault lines and especially California residents are generally encouraged to purchase this insurance in addition to their homeowners insurance.