Earthquakes and Homeowners Insurance: What You Need to Know
Earthquakes can be completely devastating, and rebuilding your home without insurance may be difficult.
The threat of earthquakes is very serious and highly likely in many states, though getting insurance coverage isn’t always easy. While a standard homeowners’ insurance policy does not cover damages caused by earthquakes, your insurer may offer an earthquake insurance add-on to your current policy or a separate policy for an additional cost. Earthquakes and your homeowners’ insurance can be a mystifying topic — but we’re here to help.
Continue reading below to learn more.
Do You Need Earthquake Insurance?
Earthquake coverage is not mandatory. While earthquakes can happen in any of the 50 states, some areas are more likely to experience them, and in those cases, earthquake insurance may be a necessary purchase. The U.S. Geological Survey can teach you more about your state’s tremor timeline. If you live in a region with frequent seismic activity, you may want to consider earthquake insurance.
Where Do You Get Earthquake Insurance?
If you want to purchase earthquake insurance, the best place to start is with your current homeowners or renters insurance provider. You’ll want to ask them if they offer an add-on policy or if you need to buy a separate, standalone policy. Some companies do not provide earthquake insurance, so you’ll need to look elsewhere. While others, especially in western states where earthquakes are more frequent, the law requires them to also provide earthquake coverage.
What Might an Earthquake Insurance Policy Cover?
Earthquake insurance policies will vary from one to the next, but an earthquake policy will generally cover repairs to your house and attached structures, like your garage. It will cover your personal belongings, such as clothes and furniture, and any additional living expenses, like hotel bills if you cannot live in your house.
On the other hand, a typical earthquake insurance policy will not cover fires caused by earthquakes (your homeowners’ insurance usually covers that). It will not cover damage to your vehicles (this is covered by comprehensive car insurance) or floods (a separate policy is needed for floods). It also does not cover sinkholes or masonry.
How Much Earthquake Coverage Do You Need?
If you own your home, your insurance company will usually set the same limits on dwelling coverage for both your home and earthquake insurance. If you rent, you don’t need to worry about dwelling coverage. Your personal property coverage limit may be set on the lower side (10% of the dwelling coverage) to start, but you can raise the number to your insurer’s max.
Contact Hudson Douglas Public Adjusters
If your home has suffered damage due to an earthquake or other natural disaster and you have insurance coverage, contact the team of professionals at Hudson Douglas Public Adjusters. With over 50 years of experience and knowledge, our team of skilled adjusters can help you quickly resolve your insurance claim. We represent you, not your insurance company. If you live in Arizona, Colorado, Utah, Nevada, New Mexico, Pennsylvania, or New Jersey, contact us for your free, no-obligation claims review today.
