Many people living in the U.S. aren’t usually interested in earthquake insurance because they think that they are safe from earthquakes. However, according to U.S. GeoNet project, the U.S. has between 50 and 80 earthquakes each day, or about 20,000 a year. In addition to that, about 42 states considered at risk. Therefore, to be on the safe side, you need to consider buying Earthquake Insurance before anything unexpected happens.
What is Earthquake Insurance?
Earthquake insurance is a type of property insurance that will cover some of the losses and damages to your home, belongings, and other buildings on your property caused by an earthquake. Very often people think that if they own Homeowners Insurance, it will cover the costs of earthquake damages. However, most of the basic homeowner’s insurance policies do not cover earthquake damage.
Earthquake Insurance in California
According to studies, people who live in the western part of U.S. are usually more conscious of the risks of earthquakes. In west coast states like California, people tend to buy more earthquake insurance than residents of any other state in the U.S.
However, according to the statistics received from the California Earthquake Authority, despite the increased public knowledge about the risk of earthquake, only 10% of Californians purchase earthquake insurance. This means that the rest 90% of the population does not have coverage.
What does it pay?
- Pays the repair costs of your house as well as all the structures attached to it, such as a garage,
- Pays for your personal belongings, such as clothes, furniture and so on,
- It also pays for your living expenses, such as hotel bills in case you can’t live in your home.
What does it NOT pay?
- Earthquake Insurance doesn’t pay for the fires caused by an earthquake because it is already covered by your homeowner’s insurance,
- It doesn’t pay for your vehicle either. To protect your vehicle, you need to buy additional comprehensive auto insurance,
- Floods are not paid as well. You’ll need separate flood insurance, in case if the earthquake causes a flood,
- Last but not least, earthquake insurance does not cover the costs of masonry and sinkholes.