What Earthquake Insurance Covers
Whether you’re a renter or a homeowner, your home and the things inside it can be costly to replace. It would probably be one of your biggest expenses when recovering from an earthquake.
Will you be covered when disaster strikes? Knowing what your policy will cover can give you the peace of mind that you have the protection you need. A typical earthquake policy covers your home, personal belongings, and additional living expenses if the damage makes your home uninhabitable.
Rebuilding Your Home
According to the U.S. Geological Survey, ground shaking causes the most damage to your home and structures, such as a garage, shed, or fence.
One of the primary reasons to purchase earthquake insurance is to get coverage for your home. Seismic coverage includes dwelling coverage that pays to rebuild and repair your home and other buildings.
Personal Property Coverage
The replacement cost of items inside your home can add up fast. A policy can pay to replace damaged furniture, TVs, and other personal items.
Keep in mind that coverage may have restrictions on certain types of valuables. The policy may have coverage limits on the amount it will pay to replace expensive jewelry, electronics, furs, and collectibles.
Additional Living Expenses
Ground shaking can cause substantial damage, and your home may be uninhabitable after a quake. You may have additional living expenses from not being able to live in your home while repairs are being made.
While coverage can vary, earthquake policies generally include reimbursement of additional living expenses for the loss of use of your home.
More Coverage Benefits
Sometimes, building codes and regulations change after a home is built. Earthquake insurance can help with those costs, too. If the original structure doesn’t meet updated building codes, a policy could also cover the extra expenses to become compliant with code upgrades.