Earthquakes can strike without warning, leaving behind devastating damage that a standard home insurance policy will not cover. However, many homeowners assume their policy includes earthquake protection. This is not always the case- this crucial coverage often requires a separate endorsement or policy. Home insurance and earthquakes can get confusing for clients. Our best advice is to contact your Cincinnatus Insurance advisor about what you’re looking for. We’ll go over the basics here:
Why Standard Home Insurance Isn’t Enough
Traditional home insurance typically covers damage from fire, wind, and theft—but not seismic activity. This means if an earthquake damages your foundation or causes structural failure, you’re likely paying out-of-pocket to make yourself whole. Consequently, purchasing dedicated earthquake insurance can be a financial lifesaver after a major quake.
What Earthquake Insurance Covers
Most earthquake policies help pay to repair or rebuild your home after a seismic event. Additionally, they often include personal property protection and temporary living expenses if your house becomes uninhabitable. However, it’s important to note that policies usually carry high deductibles and specific exclusions.
What’s Not Covered
Although earthquake insurance offers valuable protection, certain types of damage may still fall outside coverage. For instance, floods, sinkholes, or landslides caused by earthquakes usually require separate endorsements. Therefore, reviewing your policy details and asking your advisor questions is essential.
How Much Does It Cost?
The cost of earthquake insurance depends on several factors, including your home’s location, age, and construction materials. Homes in high-risk zones like California generally face higher premiums, yet the potential financial relief can outweigh the annual cost.
Tips for Choosing the Right Coverage
Start by evaluating your risk with tools like FEMA’s hazard maps or your state’s geological data. Then, compare policies from multiple insurers to find the best combination of coverage, deductibles, and premium rates. Lastly, ask whether retrofitting your home could lower your costs.
Don’t Wait Until It’s Too Late
Earthquakes are unpredictable, but protecting your home doesn’t have to be. With the right insurance, you gain peace of mind knowing you’re prepared for the unexpected. So act today—because waiting until after the ground shakes could cost you everything.