No one wants to ever have to experience the after-effects of a natural disaster like an earthquake. However, not having earthquake protection in the form of earthquake insurance won’t stop the event from happening. It will however ensure that you can recover from said event, and it doesn’t ruin you financially as a result. In other words, while it won't keep the ground below you steady, it does mean that you won't be devastated if you find yourself facing this natural disaster, and you will have a firm foundation of protection upon which to rely.
Why Earthquake Insurance Coverage is Important
Earthquakes’ innate ability to create catastrophic destruction makes them mysterious and scary. This is especially true because they can never truly be predicted. It is important to do what you can, therefore, to protect yourself from unpredictable and catastrophic events like earthquakes by investing in earthquake insurance.
Most banks mandate the purchase of flood insurance for homeowners when they live in a flood zone. However, the same is not true in the case of living in an earthquake-prone region. This means homeowners who reside in such areas are often left vulnerable to the destructive effects of earthquakes and left to face the cost of rebuilding on their own. Preventing this exact situation is the basis for purchasing earthquake protection insurance for your home.
What Does Earthquake Insurance Cover?
Earthquake insurance works much as you would assume. It covers or provides compensation for the loss of your personal belongings up to a predetermined amount and covers damage to your home. It can even provide living expenses if you are forced to live somewhere else while your home is being repaired or rebuilt. Limits on earthquake insurance are set up much like your typical homeowner’s policies. It usually involves a deductible, which will be deducted from the total covered losses. Earthquake coverage does not cover fire damage, damage to your land like sinkholes, vehicle damage or damage caused by a flood. Make sure you understand what is and what is not covered under an earthquake policy to determine if you need to add on more coverage for different possible disaster scenarios.
Does Your Current Coverage Include Earthquake Damage Repair?
In most standard homeowners policies, there is no specific earthquake coverage. You can add it to a policy easily though, which is advisable, especially if you live in a high earthquake risk area. In some cases, you might have to purchase a separate policy, apart from your current homeowners’ coverage to ensure that you are protected should you experience an earthquake.
Do You Live in a High-Risk Area?
It might come as a surprise to many, especially those who reside in the Midwest states like Missouri, but sixteen states are considered high risk for earthquakes. Missouri, along with other Midwest states fall into this high-risk group. Be sure to inquire about your actual earthquake risk with an insurance professional to truly quantify your need for additional coverage.
Bottom Line: Know Your Risk and Get Protected
Earthquakes are not something you have likely spent time contemplating often, especially if you reside in the Midwest. However, it is a risk that you might very well face one day that could ruin you financially, causing you to lose everything you have worked for up to this point with no compensation or protection. Therefore, it’s important to at least inquire about the value of earthquake protection in your individual case. Contact our team to make sure you are safe and protected in the event this kind of disaster strikes your area of residence. Now, not later is the time to act to ensure you are prepared for the unexpected.