Earthquakes and Your Insurance Policy
If you own a home in the United States, you might be under the impression that your homeowner’s insurance will protect it in the event of major catastrophes like earthquakes. But here’s the kicker: not necessarily. In the U.S., regular homeowner’s insurance doesn’t cover earthquake damage. Other kinds of insurance, like car insurance, do cover it, but it’s likely that if you take a close look at your present home insurance policy, you’ll realize your home isn’t.
In the U.S., certain places are more prone to earthquakes than others. For instance, the west coast is situated above a major fault line, which has resulted in a series of earthquakes; California has sure been through a lot. But just because you don’t live in California or on the west cost, don’t automatically think you aren’t in danger. Earthquakes happen all the time, and it all sorts of places. Estimates put the number of earthquakes every year at 5,000 in the United States. During the last century, there have been earthquakes in 39 of 50 states. That’s more than three-quarters of the country.
Big earthquakes, that is, with number of seven or more using the Richter scale, have taken place in both the central and eastern parts of the U.S. in the 1800s. In general, earthquakes can be anything from a small tremor that barely registers, to a building-collapsing quake that destroys entire infrastructures. If you’re unlucky enough to be caught up in one of these, you can bet on your home being damaged. Recently, in 1994, an earthquake of 6.7 magnitude in Northridge, California, resulted in nearly $20 million in damages to the town and surrounding area. And it can be worse. An earthquake can create so much destruction it will cost billions to repair. There have been even bigger earthquakes around the world since, like the Indian Ocean quake that caused the tsunami in Asia, with a magnitude of nine.
But don’t despair. Even if your homeowner’s policy doesn’t protect your from earthquake damage, you can find it elsewhere. There is special earthquake insurance for people all over the country. Not many people have it, but it’s a wise investment just the same. In certain places, like the west coast, the problem of earthquakes is significant enough to prompt calls to lower insurance rates in the area. For these people, earthquake insurance is a must.
It’s not hard to find yourself good insurance against earthquakes. Some other disasters aren’t covered either by most homeowner insurance, like flood damage, but are instead offered by the government. By contrast, many private companies provide earthquake insurance to individuals. It’s quite convenient for the average person to find a policy that suits him or her. People that live in California can also look to the California Earthquake Authority to obtain insurance. Earthquake insurance covers both damage to the structure of your house, and parts inside that get damaged in the shifting and shaking of the ground. Other damages will be taken care of by your homeowner’s insurance.
It’s not possible to accurately predict earthquakes, unlike some of the other natural disasters like tornadoes and hurricanes. Scientists still aren’t able to figure out exactly when and where one will strike. That’s why insurance is such a good idea. If you are living in an earthquake-prone region, ensure that both your home and belongings are covered to avoid any major losses in the future.
