Earthquakes are few and far between, but when they do occur they can be devastating. In fact, among natural disasters, earthquakes are the most costly to recover from. Despite the enormous financial impact that an earthquake poses to one’s home and belongings, many view earthquakes as an abstract risk—one that will likely never happen to them. However unlikely it may seem, it is important to get the facts and take prudent financial precautions, including opting for earthquake insurance to protect your assets.

 

 

Earthquake Insurance

 

Many people do not realize this, but most homeowner’s policies do not include earthquake coverage. You will need to purchase either a supplemental policy to your current homeowner’s policy, or a separate earthquake insurance policy. (Automobile insurance policies generally cover vehicles for earthquake damage under the optional comprehensive portion of the policy.)

 

What Does Earthquake Insurance Cover?

 

Earthquake policies typically cover damage to your house and your belongings, up to the insured amount. If possible, you’ll want to buy enough to cover the cost of rebuilding your house and replacing your belongings. While your standard homeowner’s policy may cover fire damage that results from an earthquake, an earthquake policy is important to cover damage that results from shaking, such as structure collapse.

 

 

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