Earthquake Insurance

What does earthquake insurance cover?

Earthquake insurance is a separate coverage policy that will cover loss from earthquake damage. Earthquake insurance typically covers costs related to :

• Structural repairs
• Rebuilding the house
• Temporary housing
• Replacing your belongings

Types of earthquake insurance

1. Traditional earthquake insurance: covers damage caused by earthquake which means that they will asses the value of items lost and reimburse a specific amount.
2. Parametric insurance: insures against specific events using parameters that helps determine the cost of payment.

Do I need earthquake insurance?

According to U.S. Geological Survey’s National Seismic Hazard Map, more than 40 states are at risk for damage caused by earthquakes.  According to USGS, here are some factors to consider:

• proximity to active earthquake faults
• frequency of earthquakes
• time since last earthquake
• type of building and foundation
• architectural layout
• materials used
• type and condition of soil
• slope of the land
• annual rainfall
• value of the building and its contents
• cost of the insurance and restrictions on coverage

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