Earthquake insurance is for individuals who live in areas that are prone to earthquakes. Since standard homeowner’s insurance will not cover damages that happen in a earthquake, you will need to get a separate policy. However, there are some occasions when you can get it as an add-on.
Who needs an earthquake policy?
Although earthquake insurance isn’t a requirement, it is a good idea to have if you are in a state that is prone to earthquakes. While earthquakes can happen in any state, some have far more than others. For example, Oklahoma, which is usually known for violent tornado outbreaks, had more earthquakes in recent years than any other state. The number of earthquakes is attributed to oil fracking.
Although more earthquakes have recently happened in Oklahoma, more natural occurrences, or those that are not man-made, happen mostly in the Pacific Northwest. States like California, Oregon and Washington have both volcanoes and fault lines that can trigger earthquakes at any time.
What you need to know about an earthquake policy
There are some things that earthquake policies pay for, and other things they don’t pay for. Here is a list.
What this insurance pays for:
• Repairs to your house and damaged structures like a garage or a barn
• Personal belongings that get damaged inside your home like clothing and furniture`
• Expenses for you to have somewhere else to live if your home is in disrepair
What this insurance does not pay for:
• Fires caused by the earthquake, which is already covered by homeowners insurance
• Vehicle damage. It is already covered by comprehensive auto insurance
• Floods. You will need a separate policy for this
• Sinkholes. You should also have a separate policy for this