What is earthquake insurance?
As an insurance agent from Encino, California
we typically get asked these questions a lot since California is such a big earthquake destination. Earthquake insurance is a type of homeowners insurance that covers damage to your home and personal possessions caused by earthquakes. It's different from earthquake coverage on your car or home, which only covers damage to the structure of your vehicle or property.
Some states require sellers to disclose the existence and cost of earthquake policies before selling their homes. If you're purchasing a home in one of those states, you may be required to buy an additional policy before closing your purchase.
Why do you need it?
You may think you're not in an earthquake zone, so why bother with earthquake insurance? That's understandable. But earthquakes are unpredictable and can cause devastating damage to both individuals and businesses. In fact, according to the USGS (U.S. Geological Survey), earthquakes are one of the top causes of damage to homeowners' properties or personal possessions across the United States, not just in places like California but all over.
Factors that affect earthquake coverage:
Location: Is your home located in a high-risk area? If so, you may qualify for special rates and coverage from insurers.
Age of home: Older homes built before current earthquake standards may be considered high risk by insurers.
· Value of home: The higher the cost of your property, the more likely you will get fair coverage at a reasonable price.
· Construction Type: Wood frame construction tends to fare better than brick masonry during an earthquake. However, newer steel frame homes can also be vulnerable if they're not bolted securely to their foundations or attached with strong seismic ties (if built in California).
