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Earthquake Insurance

Shocking as it may seem, there are more than a million earthquakes annually. Most think of earthquakes as rare events that only take place in areas with frequent seismic activity. The fact is, there are earthquake tremors all the time and all over the map. Most won’t be felt by humans, and generally, what we see on the news are earthquakes large enough to be felt and which cause substantial damage.

But you do not have to live near a fault line to obtain this kind of insurance. The proper policy should ideally cover the expense of replacing or repairing damaged property. When deciding on a policy, consider the following:

  1. Is only your dwelling covered by the insurance policy? Are structures such as garages also included?
  2. Will the policy cover the contents of your home and living expenses should your home be destroyed or too badly damaged to be lived in prior to repairs?
  3. What deductible must be paid before the insurance kicks in?
  4. Does the coverage feature any exclusions or limitations?

The rates for this kind of insurance depend on factors such as the location and probability of an earthquake. Homes made of wood may get cheaper rates because wood withstands earthquakes better than those made of brick.

Older homes generally cost more to insure. Premiums are also based on how close your home is to recognized fault lines and also the nature of the soil around your property. This is all reflected in the insurance rates.

Earthquakes can be the natural world’s worst form of mayhem. If you live outside an earthquake prone area, and certainly if you live within one, protect yourself now.