Standing Strong with Earthquake Insurance

Traditional insurance policies do not cover Acts of God, including earthquakes. But with the changes in the earth movement, reports of earthquakes have been constant and most are devastating. Whether you live in an area where there's a fault line or not, your house is always at risk. Fortunately, provisions for earthquake insurance is available as an add-on to your standard insurance coverage. Renters can even have their personal properties ensured.

With the damage that your property can sustain during an earthquake, getting coverage is a practical choice. However, it can be expensive, especially because of the risk involved. No company will jeopardize doing business only to become bankrupt after a surge of insurance claims on earthquake. Expect to pay high premium for this type of insurance. Still, the price you’re paying is worth every penny when the disaster strikes.

Before signing the dotted line, make sure that you are aware of your coverage. Reading the fine print will help you take an informed decision whether the policy you're taking is worth it or not. Some insurance policies will only do a payout if the property damage has reached a certain level. Most policies are only beneficial when your home is totally wrecked. You can carefully weigh the benefits of each policy by shopping around. You don't want to end up with nothing after an earthquake despite having paid your premium diligently.

Verify which damages are included in your coverage. Damages caused by natural disasters that started from an earthquake may not be covered. If you live near the ocean, you risk experiencing tsunamis; properties near mountains may encounter landslide. You may opt getting additional insurance for these disasters too.

Check out your possible deductible. Again, because of the risk involved in earthquake insurance, companies may require you to shoulder a higher percentage of deductible. By carefully assessing your present and future financial capacity, you may be irked by having to shell out several thousands of money before receiving the payout. Your premium may vary depending on where you live; properties near a declared fault line will likely require higher premium.

When buying insurance for your home, inspectors will most likely check your location and how your house was built. If you are aware that you reside in a high-risk area, it would do you well to slowly upgrade your walls, house frames and foundation, fitted with latest building materials that makes it more adaptive to seismic activities. Aside from bringing your premium a little lower, it will also ensure that your property withstand the shakes in the ground.

Although the state government may extend assistance to an area greatly affected by earthquake, it is definitely better to know that your property is insured and that you will have enough to cover the expenses caused by the damage. Still, reports say only a small percentage of homeowners living in earthquake-prone areas have sufficient coverage.

Cost is likely an issue, but by having a more proactive stand, you secure your future against disaster with earthquake insurance.