Earthquake Insurance: It's not part of your traditional homeowner's policy

While your homeowner's policy may cover many things, it may not include coverage for earthquakes. There's no reason to panic though, like flood insurance, earthquake insurance can be purchased as an addition to your homeowners policy. In general, typical earthquake insurance covers the expenses that come with repair or, in some cases, the replacement of damaged property.

May 17, 2008

While your homeowner's policy may cover many things, from hail and lightening damage to ‘slip and falls' and dog bites, the traditional homeowners insurance policy does not include coverage for earthquakes. That's right. Regardless of whether or not you live in a earthquake-prone area, you're probably not covered.

There's no reason to panic though, like flood insurance, earthquake insurance can be purchased as an addition to your homeowners policy.

In general, typical earthquake insurance covers the expenses that come with repair or, in some cases, the replacement of damaged property. There are various options to choose from as well- including coverage to protect additional structures (such as detached garages and tool sheds), contents coverage (to protect the personal contents of your home), and even additional living expenses (to cover the cost of temporary housing, food and clothing if your home is destroyed).

Just like with homeowner's insurance, earthquake insurance premiums can significantly vary. Here are just some factors that may affect your premium:

The age of your home
Newer homes are built with more stringent guidelines
Construction Type
Believe it or not, homes constructed of wood are better able to withstand the forces of an earthquake, as opposed to stucco or brick
Location
Similar to flood insurance zones, your geographic area is rated in terms of a probability of a quake occurring; a higher probability will point to a higher overall premium
Amount of Coverage
With more coverage comes higher premiums

If you do decide to purchase earthquake insurance, be sure to take all factors into consideration. You're best bet would be to comparison shop different insurance companies to obtain the best rate.