What is Earthquake Insurance?
Earthquake protection insurance is a type of policy that aims to help homeowners who may suffer property damage due to this specific type of natural disaster. Most regular insurance policies for homeowners do not cover expenses if an earthquake occurs. With this insurance, people's homes can be protected.
Who is Earthquake Insurance For?
If you are a home owner, you may want to consider getting earthquake protection insurance. This policy can save people hundreds of thousands of dollars in the event of a natural disaster. For example, a home that is valued at $100,000 may suffer serious damage when an earthquake hits. It could cost $10,000 to $30,000 just to repair the damages. This cost would fall entirely on the home owner if they are not properly insured. With an earthquake policy, almost all of the costs would be covered by the insurance company.
How Does it Work?
Earthquake policies are similar to most homeowners insurance agreements. The home owner will have their home's value assessed, along with other factors. This will help the insurance company produce a monthly insurance quote. The agreement will indicate what percentage or maximum amounts the policy will pay in the event of damage from an earthquake.
If the terrible event of an earthquake becomes a reality, the home owner will contact the insurance company and ask them to come and inspect the house. After they are satisfied that the damage occurred as a result of the earthquake, the insurance policy will pay out the money that was agreed.
Different Types of Earthquake Protection Insurance
Some earthquake policies will offer lump sum payments in the event of such a disaster. Others may have a fixed percentage of all repair costs to be covered by the insurance company. Most policies will have out of pocket expenses that must be paid by the home owner. These can be increased or decreased, depending on how much you want your premium to be.
For anyone who is a home owner in an area that is susceptible to earthquakes, getting one of these earthquake policies is of paramount importance. The monthly premiums may be a nuisance, but it will save you thousands of dollars in the event of a natural catastrophe.
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