Hazard + exposure + vulnerability = risk is an equation that is well known in the insurance business. It may not mean much to you, but if you were a victim of an earthquake, then you would find that this equation is one you should have paid attention to. Most people think that earthquakes only happen in California. However, there are 40 states that are at risk of an earthquake at any time.
This means that earthquake insurance could be a coverage that most everyone needs. Earthquake insurance covers damage and repairs that are caused from seismic activity. This covers your home, belongings that are inside it, and even outlying buildings on your property. In addition, you can purchase coverage to take care of those temporary expenses that may come about from living somewhere else if your home is unlivable.
FEMA or The Federal Emergency Management Agency has identified the high-risk areas for seismic activity. If your home is one of these areas, you want to be sure that you look at the earthquake coverage options even if you are not required to have coverage. If you are not able to pay out of pocket costs to repair or rebuild your property you need to have insurance coverage. A typical homeowner’s policy will not cover damages from an earthquake.
A normal earthquake policy will cover damage to the structure of the home, as well as the contents inside. If there is structural damage, repairs are made. Be sure you evaluate the contents inside your home to be sure that you do not need additional coverage to replace your belongings and furnishings. You can list any personal items to be covered.
While you could wait for government assistance in the case of an earthquake, while you are waiting, you are on your own. Earthquake insurance can take some of that waiting away and allow you to get on with your life. If you live in a high-risk area for seismic activity, you definitely need to get earthquake coverage. It could make the difference in your financial situation for many years to come if you are the victim of an earthquake.