Here’s What You Need to Know About Earthquake Insurance
Earlier today, a 3.8-magnitude earthquake centered off the coast of York, Maine, shook houses and rattled nerves across Massachusetts. While we don’t experience earthquakes every day in our area, this morning's tremor serves as a reminder of the importance of preparing for unexpected events – including earthquakes.
It’s not something most of us think about regularly, but the reality is, earthquakes can happen anywhere, and the impact on your home and belongings can be significant. That’s why it's important to understand how earthquake insurance works and whether you’re covered in case of an event like today’s.
What Does Earthquake Home Insurance Cover?
Similar to how standard homeowners insurance covers severe weather damage, earthquake insurance provides coverage for damages that may occur due to seismic activity. Here’s a breakdown of what earthquake insurance may cover:
Structural Damage: Repairs or rebuilding costs for structural damage to your home.
Personal Property: Coverage for personal belongings that may be damaged by the earthquake.
Replacement of Your Home: If your home is destroyed, earthquake insurance can help with rebuilding or replacement costs.
Aftershock Damage: Damage caused by aftershocks occurring within 72 hours of the initial earthquake event.
Temporary Living Expenses: If you're displaced from your home, earthquake insurance can help cover living expenses while repairs are made.
Where Can You Get Earthquake Insurance for Your Home?
Most standard home insurance policies do not include coverage for earthquake damage. However, many insurers offer an earthquake endorsement or earth movement rider for an additional premium. In some cases, you may also have the option to purchase a standalone earthquake policy.
To discuss earthquake coverage, please contact LBP directly to discuss the right options for you.
How Does Earthquake Insurance Work?
Earthquake insurance operates similarly to your homeowners policy. It comes with a deductible, coverage limits, and certain conditions. Here's how it typically works:
Deductibles: Earthquake insurance deductibles vary and can be a set dollar amount or a percentage of your home's replacement cost. This deductible is subtracted from the payout when you file a claim.
Coverage Limits: The coverage for your home should be enough to rebuild it to its pre-earthquake standard. This limit should align with your homeowner’s policy dwelling coverage.
Coverage Types: Like homeowners insurance, earthquake coverage is usually split into dwelling coverage, personal property coverage, and loss of use coverage (if you're temporarily displaced from your home).
Is Earthquake Insurance Worth It?
In regions with a higher risk of earthquakes, like California, earthquake insurance is a must-have. While it’s not required by law, the cost of rebuilding after an earthquake without insurance can be devastating. In areas where earthquakes are rare, however, the cost of adding earthquake coverage to your policy might outweigh the risk.
Consider factors such as your home’s location, building materials, age, and foundation type when evaluating whether earthquake insurance is right for you.
What Should You Do Now?
If you felt the tremors from today’s earthquake, now is the time to ask yourself whether you have the coverage you need. Earthquakes may not happen every day, but when they do, having the right insurance can make all the difference. Contact us at LBP Insurance to discuss your options for earthquake coverage and ensure you’re properly protected, no matter what nature throws your way.