What it is?
Earthquake insurance is a form of property insurance that covers earthquake damage on your home and personal property. This type of damage is not covered by a homeowners policy and must be purchased as a separate policy.
Who it is for?
This insurance is for anyone that lives in an area where earthquakes may be a common event.
How it works?
Like all other insurances, this plan comes with a deductible. The deductible can range from 5 to 15%. Choosing the higher deductible can make your payment more affordable. After you make a claim for damage, your deductible is subtracted before receiving any payment. If your damages are more than your deductible, you will be sent the remaining payment to cover your damages.
Different types of coverage in existence
Earthquake insurance covers three major components: your home, personal property, and additional living expenses.
If your home is damaged, your policy covers cracks in the walls or ceilings and foundation. This is covered under the dwelling portion of your policy. However, this policy may not cover landscaping, pools, fences, masonry, or separate buildings.
This part of your policy covers furniture, TVs, and computers. China and crystal can be covered if optional breakable policy coverage is purchased. Personal property coverage starts at $5000 and can be increased to the limit of $200,000.
Additional Living Expenses
This covers the temporary and extra cost to live somewhere else while your home is being repaired. The range of coverage can be from $1,500 to $100,000. This money can be used to cover temporary rental of a home, apartment, hotel room, meals, moving and storage, laundry, or furniture rental.
If an earthquake shakes your home to the ground, you will not be homeless. Your policy will rebuild your home.
In addition to covering your home, this policy protects your home’s contents such as clothing, electronics, furniture and other possessions.
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