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Considering Whether To Add Earthquake Coverage To Your Home Insurance Policy

2010-03-13

If you live in an earthquake prone area, you should strongly consider adding earthquake coverage to your home insurance policy. The majority of residential insurance policies do not automatically cover against earthquakes, so you will probably need to add it separately. This can normally be done with just a simple call to your insurance carrier. Some carriers will even let you add this vitally important coverage online just like you would for other policy details. Whenever you add anything to your insurance policy, you need to carefully consider the pros and cons of adding additional coverage. The facts show that it is definitely worth your while to add earthquake coverage to your existing home insurance coverage.

Some people feel that they do not need to add earthquake insurance to their policy because they do not live in an area that is known for its tremors. This is simply not true. Thirty nine different states in the United States have experienced earthquakes since 1900. Over 90% of the American population lives in sections of the country that could potentially be damaged in a quake. This means that you may need earthquake coverage even if you do not live in California. For the lucky few who do live in the Golden State, the need for earthquake insurance is even greater. California homeowners face a constant threat from earthquakes, so earthquake insurance is an absolute necessity for them.

Earthquake insurance tends to be one of the more expensive options for insurance customers, leading many people to believe that the cost will outweigh the benefits. It is important to remember, however, that all insurance guards against the unexpected disaster. Just like you hope that you will never need to fully exploit your life insurance benefits, but own a policy anyway, wise homeowners should be prepared for earthquakes. If you need scientific backing to defend your decision to pay a little more for your home insurance coverage, consider the most recent findings of the U.S. Geological Survey. It concludes that there is at least a 75% chance that a major earthquake will hit the Bay Area in the next 30 years. Do you want to be caught unprepared?

When it comes to home insurance older homes are particularly important to insure. For older homes, damage costs can easily outstrip savings. They simply cost so much to repair after an earthquake that many homeowners find that they cannot afford to rebuild. Many homeowners without earthquake insurance find that they are forced to abandon their home when disaster strikes. Earthquakes can be both emotionally and financially damaging. Cut down on potential expenses in the future by investing in earthquake insurance now.