What consumers should know about buying earthquake insurance

Earthquake InsuranceThe number of earthquakes in states that are not known for tremors – such as the recent 5.6 point quake in Oklahoma and the earthquakes in Colorado and Virginia this summer – have underlined the fact that flooding, severe weather, and fires are not the only types of natural disaster that can cause damage to a home, no matter where you live.

Though California is the state that is at the highest risk of earthquakes, and it is also long overdue for another major tremor, states that consider quakes to be quite rare are also being shaken as of late. This is leading many to wonder whether or not they should be purchasing earthquake insurance, even when it has never been a consideration before.

The reason that it is such a difficult decision is that it is not an inexpensive form of insurance, and it is quite different from other forms of protection available to homeowners. Moreover, the typical homeowners insurance policy does not provide coverage for losses resulting from an earthquake.

There are certain things that you should know about earthquake insurance before you make your purchase. The first is that unlike homeowners insurance, the deductible is based on a certain amount of the limit for your policy. For example, if you have $500,000 in coverage, then you will generally have a deductible of $75,000, or 15 percent. The percentage varies among the states and can be as low as 2 percent.

It should also be noted that unlike standard homeowner’s insurance, the contents of your home are not covered in the same way that they would be in the case of a fire, for example, but are instead covered up to a pre-set dollar amount.

For more information and rates on homeowners with earthquake  insurance

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