Many people think that earthquakes are only likely to happen if you live on the coast. You might be one of the many asking themselves if getting earthquake insurance should be a priority, or if it is worth getting earthquake insurance at all. But did you know that some of the earthquake-free regions in the US have recently seen an uptick in earthquake activity lately? According to the National Earthquake Information Center, the US experiences anywhere from 12,000 to 14,000 earthquakes every year. That’s why earthquake insurance coverage is an important addition to your renters or homeowners policy no matter where you live.
What about high-risk areas along the “Belt of Fire”? One of the most frightening articles written about the devastating effect an earthquake could have on the Pacific Northwest region can be found here. In it, the following statement is made:
“osspac (Oregon Seismic Safety Policy Advisory Commission) estimates that in the I-5 corridor it will take between one and three months after the earthquake to restore electricity, a month to a year to restore drinking water and sewer service, six months to a year to restore major highways, and eighteen months to restore health-care facilities. Those estimates do not apply to the tsunami-inundation zone, which will remain all but uninhabitable for years.”
If 2020 has taught us anything, it is that the unprecedented can happen. In the case of earthquakes in the Pacific Northwest, the potential damage caused would be unprecedented, but the earthquake causing it, would not. In fact, earthquakes are so frequent in this region, that scientist were able to determine that the last big one was not too long ago. “At approximately nine o’ clock at night on January 26, 1700, a magnitude-9.0 earthquake struck the Pacific Northwest, causing sudden land subsidence, drowning coastal forests, and, out in the ocean, lifting up a wave half the length of a continent.”
So we often here experts say that “the question is not if, but when.”
How much coverage do I need?
Your standard home insurance policy does not insure losses caused by earthquakes. When looking at how much your home is insured for, that number may also not be enough to cover the full replacement of a home lost in an earthquake. Why? If your home is destroyed or severely damaged due to an earthquake, odds are so are many other properties. So building materials and labor will be in short supply. Additional costs may arise as well to adapt newly built homes to stricter earthquake standards.
We generally recommend adding at least 10% of the current coverage amount to come up with the coverage needed for earthquake losses. A safer bet is to go much higher than that.
With an earthquake policy, you could have coverage for repairs to your home, costs of temporary housing while repairing your home, and replacement of your personal belongings in your home. This coverage doesn’t just fix your home but can cover the cost of restoring your home to its same standards and unique features.
There are a couple of types of policies you could secure based on how much coverage you want. These are:
Limited Coverage Policy:
This type of policy can help cover the dwelling (your home) and offer limited coverages for other things such as the contents or temporary living expenses.
This provides comprehensive protection for your home and other limits.
At DOK Insurance Agency, you can easily schedule a free consultation with one of our experts and we will help you determine which coverage is best for you.
What is the average earthquake insurance deductible?
Your deductible will be a percentage of the total coverage you have selected. Because the deductible is a percentage of coverage, it varies by the location of the property.
Your earthquake policy will offer deductible options for you to review. Depending on which option you choose and your home’s location, you could have a deductible as low as 10%. Choosing a higher deductible could also help with reducing your premium–it all depends on what best fits your needs. If you get a quote, you’ll be able to compare how the deductible options can make a difference in your premium.
Getting a quote is super easy and you can get one in just 2 minutes!
How do I know if the earthquake insurance carrier is financially secure?
Many homeowners are concerned that a reliable carrier won’t provide an earthquake insurance policy. In the event of an earthquake, especially a large one, people often think that insurance carriers can’t handle so many claims on such a large scale. This is why it is essential to do your research on the carrier when considering who to choose.
When you consult us at DOK Insurance agency, we can take care of this for you. Our agency works with several top-rated insurance carriers so you can be assured that you are getting the best protection for your home.
How much does earthquake insurance cost?
Your home could be protected against earthquake risk for less than your daily cup of coffee.
- First, we help you determine the most accurate amount necessary to rebuild your home after
- Then, we add the coverage options that you choose for Other Structures, Personal Property, and Loss of Use to calculate the premium for
- You can choose a higher deductible or a LIMITED COVERAGE policy to save on premium without sacrificing the coverage you really need.
Earthquake insurance companies use a few factors to determine how much your earthquake insurance premium will be. These factors include your home’s location, the construction type of your home, the cost to rebuild your home, and the deductible amount that you select.
The best way to find out how much policy will cost and if it is worth it is to get an earthquake insurance quote and consider if you could cover the cost of earthquake damage without insurance coverage.
All it takes is 2 minutes to get a quote from us! Get started by clicking the button below.
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