To buy or not to buy earthquake insurance is an important question. After many recent earthquakes around the world, the issue of earthquake insurance has become top-of-mind for many homeowners.
There are two common misconceptions about earthquake insurance. First, many people incorrectly believe that their homeowners insurance policy covers damage associated with earthquakes, and therefore, choose not to add additional coverage. Second, even if a homeowner is aware that a separate policy is required to insure against earthquake damage, they will opt out of the coverage because they feel it is unnecessary.
Even in California, only 12% of property owners have earthquake coverage in addition to their homeowners policy. Why? Many of them may simply be in denial of the possibility of earthquake damage. Others may believe that earthquake insurance is something that they can’t afford. However, depending upon the coverage options you select, earthquake insurance is typically very affordable and will cover the cost of your damaged home plus any assets damaged by an earthquake on your property.
When you decide to purchase earthquake insurance, the recommendation is to buy enough coverage to pay for the costs of both rebuilding your house and replacing broken possessions. Keep in mind that you should consider replacement and reconstruction costs – not the market value of your property and possessions. A generally accepted rule of thumb is that you should not risk more than 10 percent of your liquid assets.
What’s the worst that can happen if an earthquake strikes my area?
- You would need money to repair or replace your home
- You would need cash to replace any of your belongings that are damaged or destroyed
- You would need money for temporary rent and relocation costs
Depending on the coverage options you choose, earthquake insurance can affordably cover the cost of your damaged home and any assets damaged on your property. In addition, earthquake insurance claims typically include a monthly stipend for temporary living conditions as you rebuild.
Although some geographical regions are at higher risk than others for earthquake damage, no area is immune. Do not make the mistake of thinking that earthquakes occur too seldom for you to require coverage or that you live in an area that’s “safe” from earthquake damage.
Keystone Insurers Group is conveniently located in Somerset County, Pennsylvania, and our brokers can show you just how affordable earthquake insurance can be. The peace of mind offered by earthquake insurance may be priceless! Call us today - 814-629-5607!