Earthquake insurance is a coverage that helps rebuild your home in the event that your home is damaged or destroyed in an earthquake.
How Do I buy Earthquake Coverage?
When you buy a home, condo, renters or rental policy, your agent will generally offer earthquake coverage. Also, when your shop your insurance, the agent may discuss earthquake insurance with you. There is always an additional premium for earthquake coverage. Generally, if you decline earthquake coverage as your speaking with your agent, the insurance company will mail an offer to you. The offer will include various deductible options, retrofitting options and corresponding prices. For a quote, contact your agent at 1-888-737-6200.
What is the Earthquake Deductible?
When you select earthquake coverage, it will come with a deductible. The deductible is the amount of money that you pay first before the policy kicks-in to pay the difference between the deductible amount and the policy limits. Deductible options include: 15%, 20% and 25%. Sometimes, insurance companies offer a 10% deductible. In order to determine the dollar amount that you'd have to pay in the event of an earthquake, take the deductible percentage times the amount of "Dwelling" coverage your home insurance policy has listed in the policy limits. For example, if your home is insured for $200,000 and you selected a 15% deductible, your responsible for damage up to $30,000. Any earthquake damage over $30,000 can be turned into your insurance company as an earthquake claim.
What is Earthquake Retrofitting Coverage?
This coverage is very important. Often times, in order to qualify for earthquake coverage, your home has to be retrofitted. This means that the walls of your home have to be bolted down to the foundation of the home. Generally, newer homes are bolted down. Older homes may not be bolted. If an earthquake occurs and damages your home, earthquake retrofitting coverage will pay for the cost to bring your home back up to today's retrofitting building codes. It usually doesn't cost very much and it's an important coverage to obtain.
What is an Earthquake Shut-Off Valve?
Some companies waive the requirement that your home must be bolted down as long as you have an "Automatic Earthquake Shut-off Valve." These valves can be installed by professionals for around $200. In the event of an earthquake, if your home is shaken off of its foundation, this device will automatically turn off the gas entering into your home. In theory, this will prevent a fire from destroying your home when an earthquake occurs.
If I don't accept earthquake when I buy the policy will it be offered again?
Yes, earthquake will be offered to you every other year by the insurance company. You have 30 days from the date of mailing to accept the offer. You must contact either the insurance company or your agent to have the coverage added to your home insurance policy. If you don't reply to the offer, it will be assumed that you do not wish to add the coverage.
What if I want I want to add earthquake coverage now?
Contact your agent for a quote. He/she will ask the insurance company for a quote on your behalf. Sometimes, depending on the rules of the company, you may have to wait until the coverage is offerred by the company every other year. If an earthquake just occurred, an earthquake moratorium may be in place for 30 days. This means that the coverage won't be available for purchase until after the 30 days has past. Always contact your agent for more information and a quote at 1-888-737-6200.