What It Is
Earthquake insurance covers damage done to a persons property in the event of an earthquake. This insurance only pays for any damages that exceed the amount that the deductible is set at. There are times when a second deductible can be attached to the policy in order to provide coverage for other aspects of the home that may not be covered with standard insurance.
Who It’s For
Anyone that lives in areas with fault zones or the propensity for earthquakes should heavily consider this type of insurance. No one ever thinks that an earthquake is going to occur and damage their property, but for those that live in places like California and Washington nearby large fault zones, it only takes one earthquake before your home is destroyed. Though this type of insurance doesn’t cover everything, it will provide homeowners with a chance to rebuild after the damage has been done. If you don’t live in an area with large amounts of earthquakes, then it’s not as necessary to purchase.
How It Works
If an earthquake occurs and causes damage to a persons home, this person can then file a claim to the insurance company. A representative will then travel to the home to ascertain what damage has been done and if the policy holder is able to seek damages. If the answer is yes, the insurance company will then send a check for the total amount covered by the insurance policy.
Types of Coverage
The main coverage for this policy extends to damage done to the home, damage done to personal property and any additional living expenses while repairs are taking place. Additional building code upgrade coverage may also be purchased, which covers land restoration, emergency repairs and debris removal.
The primary benefit of this coverage is that the homeowner doesn’t need any separate insurance for their home before purchasing earthquake insurance. Being able to cover the costs while living somewhere else during the time when repairs are being done is also a major benefit.