California and other surrounding states typically need a separate insurance policy to cover earthquake damages. Structural and personal item loss can occur, and earthquake insurance offers benefits and limits. This type of insurance helps your family and home remain safe when disaster strikes.
Do You Really Need It?
Many regions besides the West have regular earthquakes. Along the “Ring of Fire,” or encompassing circumference of the Pacific Ocean, earthquakes are quite frequent and damaging. If you reside near this area, or one with a history of earthquakes, consider purchasing earthquake insurance.
What It Covers
Individual policies are unique if you own or rent property. A homeowner must have coverage of the structure and belongings inside. Renters, however, must just cover their belongings. Some policies pay out to cover hotel costs if a building needs structural work.
Most companies offer a rider for earthquake coverage if you have homeowner’s insurance. However, you can choose for individual policies, especially if you are a renter. No other insurance covers earthquake damage. With a homeowner’s insurance policy, your foundation cracks will not cover the damage if caused by an earthquake.
Keep Your Costs Down
Some construction features can save you money on earthquake coverage. Wood frame houses flex with movement and therefore can lower your policy premium because of its level of resistance. Research and find out if your home has a retrofit system, like specialized bolting to the foundation. Insurance policies are often discounted when they have modern technology applied for earthquake resistance.
This form of coverage keeps your assets and family covered. Earthquakes can seamlessly crack and warp structures in a matter of seconds, making them a safety hazard. To protect your family and belongings, get a stronger policy that takes many factors into consideration. Basic policies will also take stress out of disaster, if it occurs.