Several new earthquake fault lines were recently discovered on the West Coast, including two in Los Angeles and Spokane, Wash. However unlikely an earthquake may seem, it is important to get the facts and take prudent financial precautions, including opting for earthquake insurance to protect your assets.
Typically, we think of earthquake risk existing only in a small portion of the country: California, Oregon and Washington. However, recent experience tells us that the Midwest region including Illinois, Arkansas, Indiana, Kentucky, Mississippi, Missouri and Tennessee is also at a relatively high risk due to a fault line that runs through those states.
Most homeowners policies exclude earthquake damage, so you will need to purchase either a supplemental policy to your current homeowners policy or a separate earthquake insurance policy. (Automobile insurance policies generally cover vehicles for earthquake damage under the optional comprehensive portion of the policy.)
Earthquake policies typically cover damage to your house and your belongings, up to the insured amount. If possible, you’ll want to buy enough to cover the cost of rebuilding your house and replacing your belongings. While your standard homeowners policy may cover fire damage that results from an earthquake, an earthquake policy is important to cover damage that results from shaking, such as structure collapse.
Because of the massive potential risk associated with an earthquake, coverage tends to be expensive. Your premium amount will depend on your location, along with the age and structural composition of your home.
Don’t take your belongings for granted—earthquakes can happen at any time. Contact us today for more information on earthquake insurance.