Earthquake Insurance

It's easy to tell yourself that an earthquake will never actually damage your home. However, if your home is impacted by an earthquake, it's easy for an earthquake to completely destroy your home. The worst part about having your home damaged or destroyed by an earthquake is that it's most likely not covered by your standard homeowners policy. While your homeowners insurance will cover the costs of damage to your home that results from a fire or a robbery, most standard policies exclude coverage for earthquakes.

If you're aware that your homeowners policy doesn't provide coverage in the event of an earthquake, you may still believe that you will be fine as a result of federal assistance. While federal assistance may be available to you, this option doesn't guarantee your security after an earthquake. Although an earthquake can destroy your entire home, most federal assistance will only provide up to $30,000. And if you choose to seek out a federal loan, not only is there a limit on this option, but sooner or later you will have to repay every dime that you borrow.

If you want to ensure that an earthquake won't plunge you into financial ruin, you need to fully protect yourself with earthquake insurance. An earthquake specific insurance policy is the only way to guarantee that you will be fully covered if your home is damaged by an earthquake. In addition to the peace of mind that earthquake insurance will give you, there are several benefits to obtaining earthquake insurance. The first benefit is that you can work directly with your homeowners insurance agent. While your standard homeowners policy most likely doesn't cover earthquake related damage, your agent can help you obtain this protection. Since you're already used to working with your agent on insurance related issues, it's helpful to have this same level of comfort for obtaining earthquake insurance. Another benefit of earthquake insurance is that your premium will be based on your actual residence. Instead of paying a standard premium, what you pay will be based on the value of your own residence. Protecting yourself with earthquake insurance will also ensure that you don't have to pay anything out of pocket after an earthquake. If an earthquake strikes your home, all of the necessary costs will covered by your insurance policy.

One fact that many people who are interested in earthquake insurance don't initially realize is that owning a home is not necessary to protect yourself in the event of an earthquake. Whether you own a mobile home, a condo or you rent a residence, you can obtain an earthquake insurance policy. The reason that earthquake insurance is even a good idea for renters is because it can provide you with up to $100,000 worth of personal property coverage and up to $15,000 of additional living expensive coverage.

If you decide that you want to protect yourself with earthquake insurance, there are several questions you will want to have answered before selecting a policy. First, find out whether a policy only covers your actual residence or also covers additions like your garage. Next, ensure that the policy provides coverage for the personal possessions in your home and the additional living expenses you will incur if your home is severely damaged by an earthquake. Also, make sure that you know about any limitations or exclusions that are present in your policy. Finally, while your premium will be based on your specific residence, there are some general trends among earthquake insurance policies. Older homes normally have higher premiums than newer homes. And homes built from bricks normally have higher rates than homes built from wood.

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