Getting to Know Earthquake Insurance
This is a sort of property insurance that will pay a policyholder when an earthquake causes damage. An earthquake can be described as the sudden violent shaking of the ground as a result of the earth crust movement. This coverage doesn’t exist in other forms of insurance but can be added as an endorsement or bought as a separate policy. The minimum amount of earthquake insurance you will need is determined by the cost of your property among other factors.
What it covers
Interestingly, this policy covers other things and not earthquakes alone- since an earthquake also includes the rising, sinking or shifting of the earth. Things like mudflows, mudslides, tremors, and sinkholes often are included in the plan.
This insurance covers the damages to your home, possessions in your house, and any additional living expenses such as the cost you incur when living somewhere else while the affected area is evacuated. In short, your dwelling place is covered as well as other detached structures located on your property. Note that there might be some exclusions or limits on some kinds of losses from earth movement. Ensure you review your coverage and needs with your insurance company or agent before signing up.
How it works
Since damages caused by earthquakes are often excluded in other coverages, you may have to buy this plan separately. When an earthquake or landslide occurs, you can file a claim with your insurer. The insurance companies will assess the damages to your home through their adjuster. In case you have that ” actual cash value coverage,” they will provide the amount of the estimated repairs after deducting the depreciated value once you pay the deductibles for your plan. If you opted for the ” replacement value” plan, you would get the money for the estimated repairs for rebuilding your home once you reimburse the deductible amount.