Affordable Earthquake Insurance For Homeowners – Earthquakes’ potential for catastrophic destruction makes them intriguing and mysterious, especially since we have no real way to predict when they will occur. Beyond the major ones that receive international attention, many small, undocumented earthquakes go unreported and cause problems for homeowners and renters across the United States.
There have been more than 50,000 earthquakes in the past 365 days, according to the Earthquake Tracker, so when it comes to protecting your home and personal property against earthquakes, you want to be properly covered for loss, not no matter the strength of the Richter. ladder
Affordable Earthquake Insurance For Homeowners
Earthquake insurance reimburses you for damage caused by earthquakes, from damage to your home and personal property to temporary living arrangements. It is available in most states as an add-on to your home insurance policy, or you can purchase it from a carrier that specializes in selling earthquake coverage. Geography 101: An earthquake is an intense shaking of the earth’s surface, caused by fractures in the earth, aka fault lines, which can be devastating to the structure of a house and extended property. 148 million Americans are at risk of damage from earthquakes, and fault lines are not the only cause of earthquakes – fracking and mining also cause earthquakes in parts of Oklahoma, for example.
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The potential cost of earthquake-related damage has risen steadily as buildings age, and more urban developments spring up in areas that are at high risk for earthquakes.
No. Homeowners and insurance policies do not cover damage caused by earthquakes, so if you live in a high-risk area, you will need to purchase a separate policy, along with your basic home or renters insurance.
Some homeowners insurance policies may cover damage caused by a fire after an earthquake, which is a common consequence of an earthquake.
1. Home coverage: If you are a homeowner, this covers damage to your home and extended structure, such as a garage or swimming pool.
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3. Loss of use coverage: Any additional expenses you may need, such as a hotel, takeout, and parking if you can’t stay at home.
Quick overview: an insurance deductible is the amount of money you choose when you buy a policy that will be subtracted from any future claim payments.
When it comes to earthquake insurance, deductibles tend to be high, somewhere between 15-20 percent of your home coverage limit. Cities built closer to or on active fault lines have higher deductibles, so you’ll end up paying more out of pocket if you make an insurance claim.
So let’s say your home coverage is $200,000, and you have a 20 percent deductible. If you file a claim for $200,000 in damage to your home, you are responsible for paying $40,000 before your insurance kicks in.
Residential Earthquake Insurance Insurance
The average cost of earthquake insurance in the United States is $800 per year. Keep in mind that single-family home insurance in California can cost more — between $1,248 to $2,744 per year for $500,000 of coverage.
However, the exact price of an earthquake insurance policy will depend on your coverage limits, deductibles and many other factors, including:
Btw, California residents can use the California Earthquake Authority (CEA) premium calculator to get an estimate of how much earthquake insurance will cost.
It depends. Earthquake insurance is not mandatory, but depending on where you live, your home may be at risk of suffering irreparable damage. California law requires homeowners insurance companies to offer additional earthquake coverage, but there is no law that forces anyone to actually buy a policy.
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Only 13 percent of Californians buy earthquake insurance because people don’t think it will happen to them, according to California Earthquake Authority CEO Glenn Pomeroy. They also mistakenly believe that homeowners or renters insurance will cover them for earthquake damage.
While people tend to think that only the state of California is at high risk, there are actually 42 other states that are also at risk for earthquakes, 16 of which see an earthquake of magnitude six or greater registered on the Richter scale .
If you don’t have the money set aside to rebuild your home, recover your personal belongings, and pay for temporary living expenses, you should definitely consider buying an earthquake insurance policy. Don’t forget, the budget would be above the ongoing costs to pay your mortgage, even if your house was completely destroyed.
FYI: If an earthquake occurs in your area, insurers will not sell new policies for a couple of months.
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Some argue that high deductibles and premiums make earthquake insurance expensive—and therefore not worth the money.
To find out if an earthquake insurance policy is worth it to you, start by determining the potential risk of where you live. Use this map from the US Geological Survey to figure out the likelihood of an earthquake in your area (you may be surprised to find you’re closer to a fault line than you think).
The farther from a fault line, the cheaper a policy, so you may decide it’s worth buying a policy for about $25 a month for peace of mind.
There are dozens of insurers that offer earthquake insurance as an add-on to their standard homeowners policies. If you are interested in adding coverage to your policy, ask your insurance company if they offer Earthquake Insurance in your state, and how much it will add to your monthly premiums.
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At , we offer Earthquake Insurance for our California homeowners insurance policyholders through our partners, Palomar, for a few extra bucks a month. This add-on extends coverage for your belongings for any physical damage from an earthquake.
It should be noted that a basic policy already covers direct loss caused by fire, explosion or theft resulting from earthquakes.
Banks require homeowners to purchase flood insurance if they live in flood zones, but the same does not apply for earthquake insurance. Because of this, homeowners often leave their homes without a contingency plan.
If you live on a fault line or near areas that experience fracking, it’s worth buying earthquake insurance, and of course always have a renters or homeowners insurance policy in place .
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Arizona, California, Colorado, Connecticut, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Virginia, Washington, D.C. (not a state…yet), and Wisconsin.
Does Home Insurance Cover Natural Disasters? From fires to floods, earthquakes and tornadoes, we’ll explain when your policy will help (and when it won’t).
Does Homeowners Insurance Cover Ice Dams? Often, but there is a lot you can do to avoid problems in the first place.
Please note: articles and other editorial content are intended for educational purposes only, and should not be relied upon as a substitute for professional legal, insurance or financial advice. The content of these educational articles does not alter the terms, conditions, exclusions, or limitations of the policies issued by , which differ according to your state of residence. While we regularly review previously published content to ensure it is accurate and up-to-date, there may be instances where legal conditions or policy details have changed since publication. Any hypothetical example used in the editorial content is purely illustrative. The hypothetical examples do not alter or relate to any application of your insurance policy to the particular facts and circumstances of each actuality. Expert advice from Bob Vila, the most trusted name in home improvement, home remodeling, home repair and DIY. Tried, True, Trusted Home Advice
Myths & Earthquake Insurance Archives
How Much Does Earthquake Insurance Cost? An earthquake insurance policy can be a smart choice for homeowners or renters in high-risk areas. On average, earthquake insurance costs $800 to $5,000 per year nationwide, although the price can be much higher for policyholders who live near an active fault.
Most people have heard of homeowners, renters, and flood insurance, but earthquake insurance is a lesser-known type of coverage. While earthquake insurance is not required for a homeowner or renter living in the Midwest, where the risk of an earthquake is low, it can help protect insureds in high-risk areas such as the West Coast, from the financial turmoil after an earthquake damage. .
How much is earthquake insurance? On average, earthquake insurance costs between $800 and $5,000 per year per country. Premiums are typically higher than the average cost in areas with regular seismic activity, such as California, and lower in areas that do not typically see earthquakes, such as Ohio. The exact cost of coverage depends on many factors, all of which are discussed in this cost guide. The guide will also explain the different types of coverage, offer some ways for policyholders to save, and address some common questions about earthquake insurance.
As with any type of insurance coverage, the exact cost of earthquake insurance can depend on many factors. Some of the main factors include the level of risk in the geographical location of the customer, the type and amount of coverage chosen, and the structure of the house, although there are many other factors that can also affect the cost.
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Is earthquake insurance expensive? In general, the higher the risk of earthquake in the area of an insured, the higher its cost for earthquake insurance coverage. It is because the owners of the house and the renters who live in the areas that
