How much do you know about earthquake insurance? Many people know very little about it, unfortunately. If you live in an area that has earthquakes you will need some sort of insurance coverage for this. The following are some truths about earthquake insurance that you need to learn about before you get this insurance. You also should read through these tips if you are thinking about getting rid of earthquake insurance. You need your insurance, no matter its form, to work perfectly for you at all times. Take your time and see if you can discover some new information about earthquake insure that you did not know before.
Right off the bat, earthquake insurance will cover the cost to repair or even replace your damaged property. This is the basic form of coverage, however, there are more options. In your plan you must decide if you want the house itself to be covered or do you want the house and the accessory structures around it covered. You also need to decide if you want the contents within your home covered and if you require additional living expenses if the damage to your home is great. The deductible that you will pay before the insurance helps is also something that you need to figure out. In the end, you need to know if there are any major exclusions and limitations to your coverage. Those could really set you back if they take you by surprise.
When it comes to the cost of earthquake insurance, each company can really vary. It just depends on a few factors. It will cost less to insure a new home than it does to insure an old home. Brick homes will cost more to insure than wood homes, because wood homes resist earthquakes better than brick. You will also be graded on a scale of 1 to 5 in regards to the likelihood of earthquakes in your area. The higher your rating the more it will cost you. The deductible of the policy can be very high as well. Usually the deductible ranges anywhere from 2 to 20 percent of the coverage limit of replacement. If you live in California check with your state insurance department. There may be some different rules and regulations that you need to follow.
It is smart of you to buy earthquake insurance that will cover the costs of rebuilding your home as well as replacing any possessions that might have been damaged. The market value should not determine the amount of coverage that you buy, the replacement and reconstruction costs should be the determining factor. Make sure you know how to properly file claims before you go any further with this insurance. Damage from earthquakes does not always show up right away. Your earthquake insurance agent needs to realize this. The coverage you buy is individual to your own needs, so take your time and get it right.