Categories
Make Money From Home

Earthquake Insurance: Do You Need It and Is It Worth the Cost? – GOBankingRates

andresr / Getty Images

…….

andresr / Getty Images

How do you know if you need earthquake insurance? GOBankingRates spoke with Gus Garcia, director of personal lines contracts at Farmers Insurance, to learn more about what earthquake insurance does for homeowners and renters and the most common myths surrounding earthquake insurance.

Learn: Unplug These Appliances That Hike Up Your Electricity Bill
Read More: 20 Home Renovations That Will Hurt Your Home’s Value

What is Earthquake Insurance?

Earthquake insurance is a separate endorsement or policy, depending on the state, for coverage from damages caused by an earthquake to your home and belongings. Typically, earthquakes aren’t covered by a standard homeowners policy.

Bonus Offer: Choose a high-interest savings account from our list of top banks with rates at 5X to 10X the national average and start saving today.

“Earthquake insurance covers your home and belongings specifically for the peril of an earthquake,” said Garcia. “Without an earthquake policy, if an earthquake struck your area and damaged your home, any repair costs would have to come from your pocket.”

POLL: How Much Do You Expect Your Tax Refund To Be This Year?

Common Myths About Earthquake Insurance

There are several myths associated with earthquake insurance. Below are some of the most common myths, debunked.

Myth: I don’t have to worry about earthquake insurance because it’s part of my standard homeowners policy.

No, it is not. “Earthquake coverage is typically provided via a separate endorsement or policy, and loss due to earthquake is not usually covered by a standard homeowners policy,” said Garcia.

Myth: Earthquake insurance is too expensive.

“We’ve all seen how devastating earthquakes can be. Rebuilding on your own after an earthquake can be far more expensive, time consuming and potentially unmanageable when considering all of the other unexpected issues that can arise after a natural disaster,” said Garcia.

Bonus Offer: Choose a high-interest savings account from our list of top banks with rates at 5X to 10X the national average and start saving today.

Myth: Earthquakes only happen in California.

You don’t need to live on the West Coast to experience an earthquake. Garcia said many areas of the country are susceptible to earthquakes. 

“The New Madrid fault zone, which extends from northeast Arkansas to southern Illinois, produced some of the strongest earthquakes in North America during the early 1800s. The East Tennessee and Central Virginia Seismic Zones can also produce damaging earthquakes, not to mention states like Oregon, Washington, Nevada, Hawaii, Alaska, Wyoming, Idaho, Montana, Oklahoma and northern Texas, to …….

Source: https://www.gobankingrates.com/saving-money/home/earthquake-insurance-do-you-need-it-worth-the-cost/

Leave a Reply

Your email address will not be published.