Earthquake Insurance?

Earthquake damage is not covered by a standard homeowners insurance policy.

Too many people find out the hard way that earthquake damage is not covered by their homeowners insurance policy. A standard homeowners insurance policy will cover your dwelling and your personal property against many perils. Things such as damage from hail or wind during a storm, theft or vandalism, even a car crashing into your house would be covered by a standard homeowners insurance policy.

But some things such as floods and earthquakes are not covered. To be covered for earthquake damage requires that you purchase additional insurance. The premiums for this type of insurance are generally pretty small but the deductibles can be high. If you choose to get earthquake insurance shop around for the best deal. Try to find a policy that offers the most coverage for a reasonable price and be sure to ask about how much the deductible will be.

When you hear the word earthquake the first thing that pops into your mind may be California. But California is not the only place that gets earthquakes. Since 1900, 39 of the 50 states have had earthquakes and all 50 states have sustained damage due to earthquakes. Approximately 90% of Americans live in areas considered to be seismically active but a very small percentage of people actually care your earthquake insurance. Even in California where earthquakes are most likely to occur only about 12% of homeowners carry earthquake insurance.

Should I Obtain Earthquake Insurance?

Factors to Consider:

* Could you afford to pay for the rebuilding your home from your own savings & investments?

* Can you afford to pay the high cost of insurance, indefinitely?

* Could make payments on your current mortgage and on a new loan to rebuild?

* Can you mitigate your potential losses by bolting your roof to the walls and the walls to the foundation, for example?

* What is your tolerance for the risk of an earthquake?

* What is the risks of your current home construction (type, age, foundation)?

* What are the risks of your specific location (soil type, distance to known faults)?

"With over 20 years of experience."