Earthquake Insurance

Earthquake insurance can help you recover some of the losses that occur as the result of an earthquake. Policies can be purchased by homeowners, business owners or renters. They’re designed to provide the necessary funds to either do repairs or get set up in a new location while repairs are being made.

Earthquake policies can be broken down into three areas:

1. Dwellings

The policy will cover dwellings up to a certain limit. It only covers the building itself and won’t recover damages for other areas of the property, such as sheds, pools or outdoor barriers. However, sometimes additional protection for such structures can be purchased.

2. Personal Property

This coverage is for the valuables inside your home, such as televisions, fine artwork and furniture. Valuables that are easily breakable, such as fine china, are not covered unless you buy an additional policy for breakables.

3. Living Expenses

If an earthquake destroys your home, you’ll need a place to live while repairs are being done. This type of coverage is referred to as “loss of use” coverage. It will provide funds for a temporary living situation if your home is damaged or if an evacuation order requires you to leave the area. Aside from paying for a hotel or temporary apartment, it also covers the cost of meals, moving, rental items and laundry. However, this coverage doesn’t go on forever. You’ll have a certain time frame to get your situation figured out. Depending on your policy, the limits can range from $1,500 to $100,000 in total.

The major benefit of having earthquake insurance is simply preparedness and ease of mind. Hopefully, you’ll never have to deal with a huge quake, but it’s good to know that if one ever occurs, you and your family will be taken care of.