According to the United States Geological Survey (USGS), about 1194 significant earthquakes measuring 5.0 or more have been recorded in the year 2013. The name of earthquake itself reminds of horrendous images of loss and pain and instill fear. Unfortunately US is among the top 10 most earthquake witnessing countries.
Have you ever wondered how safe are we being on one of the most seismically sensitive areas? In the past few years, we have witnesses numerable natural disasters from floods, tornadoes to earthquakes. Yes , we cannot fight the nature but we can be prepared. Out of the natural disasters known to man, predicting an earthquake is relatively easier. The areas most prone to seismic activity have already been found and we should take proper measures to safeguard ourselves.
There are several states which are on the red list. These states are:
If you are the inhabitant of one of these states and have not yet taken precautionary measures than you are on the most vulnerable list. And when I say precautions, I just don’t mean the safety drills and exercises and earthquake proof homes. Of course these steps will reduce the impact of the calamity. But is also very important to ensure that your loss is covered. Your homeowners’ insurance does not cover loss due to natural calamities. In this scenario, the best way to minimize your loss is to buy earthquake insurance.
Earthquake Insurance – The Basics
For some states like California, your insurance company will offer you earthquake insurance as well. This insurance will protect your home and its content from the damage caused by earthquake. This insurance will help you when you are hit by an earthquake by covering the damage to your home and belongings and the cost of rent while you are living somewhere else while your house is being repaired.
What Does The Insurance Cover
A basic form of earthquake insurance covers :
The damage to your house : There is a limit on the amount to be paid as compensation on the damage to your dwelling.
The damage to your property: This would cover the damage to your belongings inside the house. The limit of this part is generally low. Also read the offer document to find out the exceptions which are not covered under the policy.
Your living expenses while you are living in a rented accommodation till the time your house is under maintenance. This would include the rent, meals ,a temporary telephone line; moving and storage costs, rental charges for furniture and laundry charges.
Your insurance premiums depend on various factors like the location and age of your house , the type of soil of the area, cost of repair or rebuilding your damaged house, the type of construction including the materials, number of stores,etc. and the deductible .
Earthquake insurance are a small price to safeguard yourselves. Don’t delay it anymore.