Earthquake Insurance - Is Your Home Covered?

The ground rumbles, pictures fall off the walls, lights swing like clock pendulums. It's an earthquake. As your duck-and-cover instinct kicks in, you wonder if your home insurance covers earthquakes or if you should have bought earthquake insurance.

Earthquake Insurance-Disasters Happen Anywhere, Anytime

Earthquake insurance is important no matter where you live—earthquakes don't just happen in California. New York State has been struck by a 5.8 magnitude earthquake and Massachusetts has suffered a 6.0 earthquake. In the Midwest, a major 5.2 earthquake rattled buildings in Illinois and Ohio. And in the South, a monstrous 7.5 earthquake hit South Carolina-the largest to ever hit the East Coast.

Earthquakes have occurred in 39 states, and have caused damage in all 50. Roughly 90 percent of Americans live in seismically active areas, according to the Insurance Information Institute (III). This can spell disaster for home owners without earthquake insurance living in states outside "typical" earthquake prone areas where earthquake retrofitting is not always standard.

Earthquakes can be devastating. A recent earthquake in Aquila, Italy, devastated the city and region, killed almost 300 people and displaced about 55,000. It will cost an estimated $16 billion to rebuild. Almost 5,000 earthquakes are felt each year, with 400 of them powerful enough to cause cosmetic damage to homes and buildings, and about 20 earthquakes a year cause significant structural damage (III).

Earthquake Insurance-Is My Home Covered?

Earthquake insurance is not part of a standard home insurance policy. Earthquake insurance coverage must be purchased separate from home insurance. The cost of a separate earthquake insurance policy varies from one region to another, so speak to your insurance agent about earthquake insurance rates in your area.

Earthquake Insurance-What's Covered?

While earthquake insurance policies cover buildings and possessions damaged as a result of the shaking and cracking from an earthquake, earthquake insurance will not provide coverage for any resulting fire or flood damage. However, you may be covered for such damage through other insurance policies, like your standard home insurance policy or optional flood insurance.

Earthquake insurance generally comes with a deductible, typically 2 percent to 20 percent of the home's replacement value. So if your earthquake insurance policy had a 10 percent deductible and your home suffered $50,000 in damage, you would be responsible for the first $5,000. Speak with your insurance agent for specifics about earthquake insurance deductible rates.

There's no earthquake season-they can happen at anytime and can cause significant damage. Look into earthquake insurance and protect your home against earthquakes. Saving money on home insurance can help offset the cost of purchasing earthquake insurance. Try InsWeb's online home insurance quote form and compare home insurance quotes from leading insurance companies in minutes.