What Homeowners Must Know About Earthquake Insurance

Although Californians are more familiar with earthquakes, an earthquake can occur anywhere in the country. Unfortunately, most homeowners are unaware of the fact that their insurance policy for their home likely does not cover earthquake damage. The same is true for renters insurance. Instead, if your home is susceptible to earthquake damage, it is generally in one’s best interest to obtain that separate policy of earthquake insurance. Here are three facts related to earthquake insurance:

  1. If you lose any personal property during an earthquake, it is not covered under your homeowners insurance policy. For example, if the shaking from an earthquake causes your TV to fall off the entertainment center, you’ll be replacing it at your own cost unless you have earthquake insurance.
  2. Indirect damage may be covered by your homeowners insurance policy. For example, if your basement flooded because the shaking from the earthquake resulted in a busted water pipe. However, there are certain personal items that may not be covered under this and would require earthquake insurance.
  3. Deductibles for earthquake insurance are generally calculated as a percentage of the replacement cost. This can range from as little as two percent to as much as 20 percent. For example, if your home is insured at $500,000, then your deductible is going to be approximately $75,000. This means that you’ll need to pay that out of your pocket and the insurance company will pay for damages that exceed that amount.

Earthquake insurance must be purchased separately from your homeowners policy. If you have other questions related to California earthquake insurance and its coverage, please contact Pulp Street Corporation and we’ll be happy to answer all questions related to any of our services.

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