This specialized insurance is designed to protect property owners from the devastating effects of earthquakes. It is typically sold separately and is available to homeowners, condominium owners, and even apartment owners through commercial policies. The cost and extent of coverage vary based on several factors. A basic policy covers direct damage to the home caused by the earthquake and often involves a moderate deductible, meaning the property owner will need to contribute a specific amount towards rebuilding, such as 10 percent of the home's value.
Basic policies might not cover damage to other structures like garages, or items such as furnishings. More comprehensive earthquake insurance policies, however, can include coverage for additional structures like pools and patios, as well as personal belongings such as furniture, clothing, and vehicles. These policies may also extend coverage to indirect earthquake damage, including fires triggered by the quake, and assist residents with living expenses if their homes become uninhabitable due to the disaster.
The location of the property significantly influences the policy cost. Areas prone to earthquakes naturally have higher rates. Additionally, the type of soil on which the property stands and the building's composition also impact the insurance cost. Homes with wooden frames are generally considered sturdier and are, therefore, more affordable to insure than those made of brick or other materials.
Having earthquake insurance means homeowners won't have to solely rely on government programs in the aftermath of a disaster. However, it's crucial for potential buyers to gather all necessary information from insurance agents before making a decision. Our advisors are here to provide you with the essential details you need to make an informed choice about earthquake insurance.