EARTHQUAKE Insurance – Customer-friendly
One of the biggest choices that homeowners will have to make when it comes to their home insurance policy is whether they would like to add coverage for earthquakes. Countless earthquakes happen every single day without anyone hardly noticing, but a larger tremor could cause huge amounts of damage to a home within moments and leave a family with no place to live.
Am I Already Covered?
Earthquake insurance is one financial product that every homeowner hopes they will never need, but being caught without it can be disastrous. What many families may not realize is that a vast majority of homeowners insurance policies do not come with coverage for earthquakes. This type of coverage must specifically be bundled with a home insurance policy.
Exploring an Earthquake Policy
These policies will need to be customized for every single family. The homeowner and their insurance provider typically come up with a set dollar amount for their possessions as well as how much will be covered for structural damage. The deductible for the policy will be determined by the total amount of coverage and generally settles at around 15 percent of the policy’s cap. This is the amount that homeowners will be responsible for before their insurance kicks in.
What Is Covered?
Instead of researching the value of the home and the possessions inside, the homeowner will most likely want to settle on a cash value policy. The higher the value of their possessions and home, the higher their premiums will be. Homeowners can opt out of contents coverage if they would like lower premiums, but this means they will get no financial help if anything they own beyond the home’s physical structure is damaged.
These policies also have some common exclusions. In most cases, landscaping and any outdoor structures such as a pool or shed will not be covered unless they are specifically added. There are also some unique components of a home such as the garage door that might not be covered as well. Due to the complexity of these policies, all homeowners should speak with an experienced insurer about their own unique needs.