[title size=”1″ content_align=”left” style_type=”default” sep_color=”” margin_top=”” margin_bottom=”” class=”” id=””]

Earthquake Insurance

[/title]

Is Earthquake Insurance right for you?

Earthquake-300x199When it comes to earthquake insurance, many people are unsure whether a policy is necessary or right for their situation. Rather than advise our clients to purchase or pass on this policy, we prefer to educate them on the details and framework so they are well-equipped to make a decision.

The typical deductible for earthquake insurance ranges is 15% to 20% of the coverage limit. For example, if your policy has a 15% deductible and a policy limit of $500,000, you will be responsible for the first $75,000 of damages.

The most significant factor to consider is the probability of sustaining damages from an earthquake that exceed your deductible. One important detail to keep in mind is that damage from fires resulting from a broken gas main or water pipes would be covered by your homeowner’s policy.

Variables to consider when making a decision include:

  • How close is your home to a fault line?
  • What type of soil is your home built on? Soil type greatly influences the amount of damage sustained as a result of an earthquake. Reports show that damage is greatest on artificially filled ground, marshes and areas of incoherent sands. Areas that suffered the least damage were on rock.
  • The age and type of home you own. Older homes and homes with multiple stories have a higher likelihood for damage.
  • Can you afford to replace your household possessions?
  • Can you afford to pay for accommodations while your home is being repaired or rebuilt?
  • How much equity do you have in your home and could you afford to lose it?
  • Do you have the assets available to rebuild or repair major damage to your home?
  • Can you afford the continued payments on your mortgage, second mortgage or lines of credit borrowed against your home while also paying to rebuild or replace your residence?

 

More Resources:
Learn how to prepare your home for an earthquake
www.earthquake.usgs.gov – Provides interactive fault line maps
www.earthquakecountry.info – Provides information on earthquake science and preparedness

View the Private Clients Services Overview