Most people are under the impression that homeowners insurance is all they need to adequately protect themselves from paying out of pocket for any damage to their property. While this is true in most cases, there are some exceptions to the coverage provided by homeowners insurance, like earthquakes. While they are not extremely common, earthquakes can be devastating and often cause hundreds of thousands of dollars in damage. If an earthquake damages your home or possessions, you will have to cover the repairs out of pocket unless you have earthquake insurance.
What Is Earthquake Insurance?
Earthquake insurance protects homeowners from financial damages resulting from an earthquake. It can pay for home repairs, possession replacements and even temporary lodging if your home is too destroyed to live in.
How Much Does Earthquake Insurance Cost?
The cost of earthquake insurance can vary a lot. Many different factors play into how much you will have to pay, including the following:
- Your location
- Your home's value
- Your claim history
- Your proximity to fault lines
Earthquakes do not occur often, but they can be very costly for everyone who is affected by them when they do occur. You can make sure you do not get caught off guard by adding earthquake insurance to your homeowners package.