[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.agilerates.com\/advice\/home\/do-i-need-earthquake-coverage\/#BlogPosting","mainEntityOfPage":"https:\/\/www.agilerates.com\/advice\/home\/do-i-need-earthquake-coverage\/","headline":"Earthquake Coverage: How To Know If You Need It","name":"Earthquake Coverage: How To Know If You Need It","description":"Earthquake insurance is an optional add-on to your existing home insurance to cover your home from damages caused by an earthquake. The law doesn’t require earthquake coverage. So, you need to determine whether you need it. To determine if you should be considering earthquake insurance, continue reading below. What is Earthquake Insurance? Earthquake insurance is […]","datePublished":"2021-01-14","dateModified":"2023-04-19","author":{"@type":"Person","@id":"https:\/\/www.agilerates.com\/author\/mark-romero\/#Person","name":"Mark Romero","url":"https:\/\/www.agilerates.com\/author\/mark-romero\/","image":{"@type":"ImageObject","@id":"https:\/\/www.agilerates.com\/wp-content\/uploads\/2022\/06\/Mark-Romero-150x150.png","url":"https:\/\/www.agilerates.com\/wp-content\/uploads\/2022\/06\/Mark-Romero-150x150.png","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Agile Rates","logo":{"@type":"ImageObject","@id":"https:\/\/dev.agilerates.com\/wp-content\/uploads\/2019\/11\/unnamed.png","url":"https:\/\/dev.agilerates.com\/wp-content\/uploads\/2019\/11\/unnamed.png","width":600,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.agilerates.com\/wp-content\/uploads\/2021\/01\/earthquake-coverage.jpg","url":"https:\/\/www.agilerates.com\/wp-content\/uploads\/2021\/01\/earthquake-coverage.jpg","height":1068,"width":1600},"url":"https:\/\/www.agilerates.com\/advice\/home\/do-i-need-earthquake-coverage\/","about":["Home","Insurance Advice"],"wordCount":777,"articleBody":"Earthquake insurance is an optional add-on to your existing home insurance to cover your home from damages caused by an earthquake. The law doesn’t require earthquake coverage. So, you need to determine whether you need it. To determine if you should be considering earthquake insurance, continue reading below.What is Earthquake Insurance?Earthquake insurance is coverage you add to your existing homeowners or renter\u2019s insurance. It covers repairs or rebuilding costs post-earthquake. Not all earthquake insurance providers offer the same insurance, so it\u2019s always best to contact an agent with any questions.What does earthquake insurance cover?There are three main types of earthquake insurance coverage to consider. The coverage is only for damages caused by earthquakes – not wildfires, floods, or any other natural disaster resulting from an earthquake. Below is more information on each of these types of coverage:Dwelling Coverage: It covers property damage to your home and structures such as the driveway or pool.Personal Property Coverage: It covers you for personal property damaged or lost from an earthquake.Loss of Use Coverage: It\u2019s used to reimburse you for the cost of food, hotel, etc., that you would require if your home is inhabitable.What doesn\u2019t earthquake insurance cover?Earthquake doesn\u2019t cover flood damage. You need separate insurance for flooding. It also doesn\u2019t cover fires, but your homeowners insurance likely covers that.How do earthquake coverage deductibles work?Deductibles must be paid before your insurance company starts paying for damages. It is paid out-of-pocket.For example, if you have $1000,000 of dwelling coverage with a 15% deductible, you will need to pay 15% of the $100,000, which is $15,000, and your insurance provider covers the rest.Who Needs Earthquake Coverage?If you live in a high-risk area for earthquakes, it\u2019s best to have insurance. These are factors that make your home a high-risk area or a high-risk home:The home’s proximity to a seismic zoneThe home’s ageThe foundation and construction typeThe deductible a homeowner choosesThe cost of rebuilding a homeAny additional coverage (such as secondary structures)How Much Is Earthquake Insurance?Earthquake insurance may be expensive, but it\u2019s worth it if you\u2019re in a high-risk area. Some factors come into play to determine your insurance rates, including how much coverage you need, the deductible, location, and the age of the home. Insurance premiums range from $800 to $5,000, and deductibles are 10-20% of the coverage limit.Earthquake Coverage DiscountEarthquake insurance is a costly addition that not everyone wants, but it\u2019s necessary. There are ways to reduce your premiums with discounts. Mitigation discounts are an excellent way to save money.The CEA offers a discount if you live in an older, wood-framed home with raised or non-slab foundations. To qualify for the discount, your home must be seismically retrofitted.Is Earthquake Insurance Worth It?When considering whether purchasing earthquake insurance is worth it, you should consider:The cost to insure your homeYour proximity to active faultsFrequency of earthquakes in your areaThe value of your home and its contentsThe amount of annual rainfallHow much time has passed since the last earthquakeWhether your home was built with earthquake preparedness in mindYour home\u2019s construction type, the material used, layout, and qualityThe type of land your home sits on, including the type of slope of the land and soilDo I Need Earthquake Coverage As A Renter?The landlord’s insurance covers your home and external structures. It’s up to your landlord to carry earthquake insurance. However, you need insurance that covers your personal belongings during an earthquake.Earthquake Coverage FAQsDoes homeowner\u2019s insurance cover earthquakes?Homeowner\u2019s insurance covers any fires from an earthquake but not specific earthquake damage.Is earthquake coverage worth getting?You might think earthquake insurance is costly, but it only takes one large earthquake to cause extensive structural damage to your home.How much coverage do I need for earthquake insurance?Ensure your insurance policy has enough coverage to rebuild your home in an earthquake. Also, the policy lists earthquakes as a covered peril.How much does earthquake coverage cost?Insurance premiums range from $800 to $5,000, and deductibles are 10-20% of the coverage limit.What\u2019s the average deductible for earthquake insurance?It\u2019s usually 10-20% of the coverage limit. If you have a home insured for $200,000 a 10% deductible would be $20,000.Getting Earthquake CoverageEarthquake insurance is important if you are living in a high-risk area. It\u2019s easy to acquire extra insurance by calling an agent. They will answer all your questions and get you the home insurance coverage you need."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Advice","item":"https:\/\/www.agilerates.com\/advice\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Home","item":"https:\/\/www.agilerates.com\/advice\/\/home\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"Earthquake Coverage: How To Know If You Need It","item":"https:\/\/www.agilerates.com\/advice\/home\/do-i-need-earthquake-coverage\/#breadcrumbitem"}]}]