Why Is Earthquake Insurance Important?

The conventional homeowner’s insurance policies typically do not cover natural disasters like earthquakes. Californians are not the only ones to worry about earthquake insurance. Earthquake risk is much more widespread than this. Earthquake presents a severe threat, but how and why to get an earthquake insurance is little mystifying.

  • The Current Insurance Policy Does Not Cover Everything:

If your current homeowners or rental insurance policy does not cover structural damages as well as broken personal property due to earthquake, then you will need to buy extra coverage to avoid paying too high repair along with replacement costs. So purchase of earthquake insurance becomes necessary if your homeowner’s policy does not cover any damage caused or repair required due to earthquake.

  • Residing In An Area With High Earthquake Risk:

If you reside on or may be near a fault line, you are at a high risk of getting affected by an earthquake. So you should definitely invest in earthquake insurance if their insurance policy could not cover earthquake damage. You can also check out the fault line as well as the risks of earthquake related to the area that you reside in to find out if you are at a higher risk of getting affected. Apart from earthquake damage, this type of policy also covers all the destructions that are caused by land movements such as landslides.

  • Coverage For Repairs:

If your property got damaged by an earthquake, you will be satisfied that you had an earthquake insurance. Depending on the policy, you will be getting coverage for repairs or reconstruction of the property rather than losing everything. So your insurance will be providing coverage pays for your repairs or reconstruction. Without earthquake insurance, any major earthquake can potentially make you homeless.

  • Low Costs In Areas Of Reduced-Risk:

Earthquakes are not as likely in every areas. So lower the risk, lower will be your monthly premiums. Even if you do not reside in a high risk area, having earthquake insurance will give you some peace of mind. If you reside in an area of reduced risk, the cost of earthquake insurance will be cheaper. You can get earthquake insurance policy for even $20 each month in those areas.

  • Additional Living Expenses:

If due to earthquake your MUB becomes uninhabitable, then the insurance company may allow your tenants extra living expenses in order to get hold of alternative accommodation while the MUB is repaired. Moreover, if you are paying mortgage for your home, this will assure you that you can live somewhere while making payments. Or else you could be paying monthly for a home where you can no longer reside.

  • Peace Of Mind:

People mostly buy earthquake insurance for psychological but also for practical reasons. This insurance will leave you with peace of mind and will aid you in avoiding any anxiety of worrying that your home as well as belongings could be wiped out in an earthquake.

  • Insure Valuable Belongings:

You may have to pay more to take an earthquake policy that includes every essential thing. But it will make sure that all your expensive belongings such as paintings, jewellery, furniture and many more are covered if they suffer any damage.

  • More Earthquakes Will Occur In The Future:

It is very certain that California will still continue to get affected by more earthquakes in the future. According to the California Earthquake Authority, there is 99% chance that an earthquake of 6.7 magnitude or greater will occur within the next 30 years. Since earthquakes are of a common occurrence, so you can expect more earthquakes in the future. Thus it is best to protect the property where you reside by buying earthquake insurance.

  • Be Ready For The Worst:

It will pay to be prepared ahead of any calamity by keeping safe all the insurance documents. Click photos of your property and other valuable belongings, in order to process all damage payments easily during the strikes of event disasters.

Earthquake can happen in all states, but some are more prone. So it is an essential. Your financial situation and your residing state will state if other consequences may exist when you walk away from a damaged property. So even if its cost is high, it will protect your investment.