Shocking as it may seem, there are more than a million earthquakes annually. Most think of earthquakes as rare events that only take place in areas with frequent seismic activity. The fact is there are earthquake tremors all the time and all over the map. Most won’t be felt by humans and generally what we see on the news the kinds of earthquakes that are large enough to be felt and that cause substantial damage. With earthquakes appearing everywhere, certainly in areas where oil and gas “fracking” now occur, how can one be certain as to avoid a potentially severe and loss-causing seismic event? The answer is you can’t and if you actually live in an area of high seismic activity, then earthquake insurance is a “no-brainer.”
But you do not have to live near a fault line to obtain this kind of insurance. The proper policy should ideally cover the expense of replacing or repairing damaged property. When deciding on a policy, consider the following:
Is only your dwelling covered by the insurance policy? Are structures such as garages also included?
Will the policy cover the contents of your home and for living expenses should your home be destroyed or too badly damaged to be lived in before repairs?
What deductible must be paid before the insurance sets in?
Does the coverage feature any exclusions or limitations?
The rates for this kind of insurance depend on factors such as location and the probability of an earthquake. Homes made of wood may get cheaper rates because wood withstands earthquakes better than those made of brick.
Older homes generally cost more to insure. Premiums are also based on how close your home is to recognized fault lines and also the nature of the soil around your property. This is reflected in the insurance rates.
Earthquakes can be the natural world’s worst form of mayhem. If you live outside an earthquake prone area, and certainly if you live in one, protect yourself now.