In many states, natural disasters are seasonal. This is not the case for those in states like California. Earthquakes in some areas are seasonal but for the most part are unexpected. This leads many people to be curious about the necessity of earthquake insurance.
Earthquake insurance is not included in all insurance policies. However, it is a requirement in earthquake-prone areas. In states that receive earthquakes, extra insurance is required. These areas include California, Nevada, Washington, Wyoming, Utah, Oregon. The damages caused to a home by a strong earthquake can require high costs to repair.
Typically, quotes for homeowner insurance might not cover the possible damages from an earthquake. If the damages are covered, the premium is usually high. The reason is that a huge risk is being incurred by the insurance company. When one home incurs heavy damages, nearby homes would be likely to have the same possibility for damage. To compensate for that risk, the companies usually require high premiums that cover earthquake damages.
Homeowners are more likely to purchase insurance here than in any other states. Frequent earthquakes, especially strong ones, can incur huge damages to homes and other property. The damages can range from small cracks in walls and floors, to a home being completely destroyed. Earthquake insurance can help in covering the necessary expenses to repair or rebuild homes and replace property.
For states that do not require earthquake insurance, it is still recommended. Deductibles are always more affordable than whatever the out-of-pocket cost would be. Luckily, for those who do not want to have multiple premiums due to wanting to cost, there are discounts for multiple policies. In most cases, you can save up to 15% by combining home insurance with earthquake.
Like any insurance product, you will have to file a claim in order to receive payment to fix any repairs. When shopping for earthquake insurance, remember to properly assess the value of the home. Many insurance companies will undervalue the home to lower premiums. A proper valuation will allow you to receive accurate compensation in the event of having to use your earthquake insurance.
Earthquake insurance in some states is referred to as natural disaster insurance. Benefits and conditions vary depending on the insurance company and state. If you need a quote for earthquake insurance to increase your home insurance, call Blue Sky Coverage.