After an earthquake, some business owners and homeowners assume their current insurance policy will cover the cost of damage. They are often dismayed to learn that they actually have no earthquake coverage. A typical homeowner’s or business insurance policy does not provide earthquake coverage. If a home or business is located in an earthquake-prone location, not having earthquake insurance can be devastating. It doesn’t matter the size of your home or business, if you are in an earthquake zone, then you should consider earthquake insurance.
Most insurance policies cover vandalism, fires and other damage inside a home. But policies typically do not cover natural disasters such as floods and earthquakes. It may seem unfair to need additional coverage for earthquakes, but some states make it mandatory for insurance providers to offer this type of coverage. The good news is that earthquake insurance can be added onto an existing policy with only a small increase in cost.
The premiums for earthquake coverage depend on different factors. These factors include the area, the likelihood of an earthquake, the cost of the home, and the value of the possessions. A family’s home is usually its biggest financial asset, so it is important to decide how much coverage is enough. If an earthquake does happen, then those with a policy simply call their insurance provider to make a claim.
Once the claim is approved, the policyholder has immediate access to the funds. Earthquake insurance makes recovery much easier by providing the funds to start rebuilding your life.