Earthquakes are a natural phenomenon in which commotion beneath the earth’s crust causes acute shifting, shaking and cracking of the earth’s surface. They are extremely dangerous and often come without warning, causing widespread injury and death and massive amounts of property damage. Earthquake insurance offers some measure of protection against these natural disruptors.
Is Earthquake Insurance Part of Homeowner Insurance?
Earthquake insurance is not typically a standard part of homeowner insurance. Acquiring an earthquake insurance policy is often something that homeowners, renters or small business owners must pursue in the form of a separate policy or as an endorsement.
Deductions for earthquake insurance are usually organized in the form of percentages, rather than dollar amounts. Most deductions can cost up to 20 percent of the replacement value of the structure. If it cost $200,000 to replace a structure, and the policyholder paid a 10 percent deductable, they are responsible for the first $2,000 of the cost.
Different regions are recognized for earthquake potential, and insurance companies reflect this information in their policy premiums.
When an earthquake strikes, you have enough to worry about without thinking about potential losses. While you stay busy keeping everybody safe and ready to act, your insurance company will be ready and waiting to jump in to help cover your damages.