What are the two most important things to know about earthquake insurance?
- Home insurance policies do not cover earthquake damage.
- Even if you don’t live in an area where earthquakes are common, you may still need earthquake insurance.
Earthquake insurance can have many options
Homeowner, condo and rental insurance policies do not cover damage caused by an earthquake, but coverage can be purchased as an endorsement or a separate policy. You may be able to choose to purchase earthquake insurance from the same company that provides your home insurance, from a specialized earthquake insurance provider, or from an independent organization (such as the California Earthquake Authority (CEA) – in California).
Do I really need earthquake insurance?
In all likelihood, almost the entire US would be better protected by purchasing earthquake insurance. Consider the facts:
- In the West: According to the U.S. Geological Survey, there is a 70 percent probability that one or more damaging earthquakes of magnitude 6.7 or larger will strike the San Francisco Bay area during the next 30 years.
- In the East: The Earthquake Education Center at Charleston Southern University claims there’s a 40 to 60 percent chance of a major earthquake somewhere in the eastern United States in the next 20 years.
- In the Midwest: According to the Insurance Information Institute, there’s a 40 to 63 percent chance the New Madrid Fault (which runs through Arkansas, Kentucky, Missouri and Tennessee) region will suffer an earthquake with a 6.0 magnitude in the next 15 years.
What does earthquake insurance cover?
Earthquake insurance provides coverage if your home is damaged by an earthquake. Standard homeowner and renters policies will not cover earthquake damage. Earthquake insurance is a separate endorsement or policy.
Earthquake insurance needs can vary significantly – talk to us today to find out how to get the best rate and value on earthquake insurance for you.