While scientists can estimate the frequency of earthquakes, earthquakes are something that cannot be exactly predicted. The majority of earthquakes are small, and you likely won’t even feel them. However, if a big one hits, the damage to your property can potentially be devastating. Your risk for earthquakes increases if you live close to fault lines, but this doesn’t mean you are safe from them if you live in states that don’t commonly have them, as the earth is ever shifting.
Why Earthquake Insurance?
Most insurance does not cover earthquake-related damage. This is because they are generally considered to be “acts of God”, and ergo, excluded from the majority of homeowner’s insurance policies. As general homeowner’s insurance typically doesn’t cover earthquake-related damages, that could make these natural disasters even more devastating, with expenses that aren’t covered piling up. This is where earthquake insurance comes in.
What Is Earthquake Insurance?
Earthquake insurance is an add-on insurance companies offer that covers the damage that can be done to your home and property in the event of an earthquake. It’s specifically tailored to help with any expenses an earthquake can cause. It can provide necessary resources to rebuild or repair any damages done, and can even help with personal property and living expenses while your home is either rebuilt or repaired.
Do You Need Earthquake Insurance?
If you don’t live in an area that has high risk for earthquakes, you can likely get by just fine without earthquake insurance. However, if you live somewhere with frequent earthquakes or near a fault line, it’s certainly something to put some serious consideration into. When assessing whether or not earthquake insurance is worth it for you, you should assess the risk factor of where you live. Though every state has experienced earthquakes at some point in time, some are at a higher risk than others, which will increase the likelihood of you wanting earthquake insurance.
What Are The Factors To Increase The Likelihood Of Needing Earthquake Insurance?
You’ll likely want earthquake insurance if, as mentioned above, you live somewhere prone to earthquakes or if it is near a fault line. You’ll also want to consider the kind of ground your home is on – is it bedrock or fill? Is it hazardous for soil liquefaction or being ruptured in the event of an earthquake? What is your house itself made of? Is your house made to withstand seismic activity or not?
If your home hasn’t been designed by a seismic engineer, it won’t hold up against an earthquake as well. If your home is built on fill, that isn’t as sturdy and resistant to tremors as bedrock is. Brick buildings aren’t able to take the shock of quakes as well as metal. These all increase potential damages – and expenses.
When considering these questions and their answers, you’ll also want to ask yourself whether or not you can afford to repair or replace the damage an earthquake can do without insurance. Earthquakes can be devastating, and many people can suffer significant losses from them. If you’re worried about the safety of your home and how prone your area is to earthquakes, it’s probably more than worth it to invest in earthquake insurance. Even in areas like California that are at high risk for earthquakes, earthquake damages aren’t typically covered in your typical homeowner’s insurance.
You don’t want to make the mistake of assuming potential damage will be covered and then faced with even more devastation in the event of disaster. Earthquake insurance will offer peace of mind, especially if you live in a high-risk area or a home that isn’t earthquake-resistant.
Is There Anything Earthquake Insurance Doesn’t Cover?
Since earthquake insurance is an add-on, there are some things it doesn’t cover. It probably won’t cover any damages to your cars – your auto insurance will do that. It probably won’t cover damage from fire – your homeowner’s insurance can do that. And it probably won’t cover flood damage resulting from an earthquake-induced flood, as that falls under a separate umbrella of add-on insurances – flood insurance.
So, Is Earthquake Insurance Worth It?
While earthquake insurance would be useful to have anywhere, since earthquakes can happen anywhere, ultimately, it’s up to you to decide on whether or not it’s worth it to you to have it. If you live in a high-risk area, earthquake insurance is most definitely worth it. If you live somewhere very low risk, you can likely get away without it, even though the threat is still there.
Are You Considering Earthquake Insurance?
Here at Insurance Unlimited in Bozeman, we offer earthquake insurance. We know how important it is to protect your home, and our earthquake insurance will help with any damages resulting from an earthquake. For more information about earthquake insurance or any of the other insurances we offer, please contact us at Insurance Unlimited in Bozeman today!