Many people don’t realize that a basic home insurance policy doesn’t cover damage done by earthquakes. Earthquakes must be covered under a separate policy. But is it worth it? And how do you know if you need earthquake insurance in the first place?

If you live in an area where earthquakes are little to nonexistent, you likely don’t need to pay the extra money for this coverage. If you live in an area with a high rate of earthquakes, however, you not only need it but may be required to carry this coverage. Reasons you may need this coverage include:

Living in a High-Risk Area 

Even in the same state, some areas are more prone to earthquakes than others. Living in a earthquake zone or near a fault line increases the likelihood that an earthquake could damage your home. Even if earthquakes aren’t intense, frequent earthquakes can still cause foundation issues in the long run that won’t be covered under your home insurance.

More than Just Earthquakes 

There are many environmental disasters that are associated with earthquakes, such as sinkholes and tsunamis. If you live near the coast, you may want not only earthquake insurance, but flood insurance as well. Like earthquakes, floods are not covered under a basic home insurance policy and must be added separately.

Extensive Damage 

Keep track of the damage earthquakes cause in your area. Calculate how much money it would take to replace your home, also known as your home’s total replacement cost value. Most people can’t afford to rebuild their home out of pocket on a whim, which is where earthquake insurance steps in. In just 2019, California suffers a 7.1 magnitude earthquake, causing over $100 million in damages.

No Savings to Lean On 

Say you’re a young adult who just moved into a new house, or you’re retired and living on a pension. Neither of these lend themselves to a great amount of savings. Even small earthquake damage can be a thousand dollars or more, but it’s dangerous to live in a house that’s been damaged by an earthquake. Staying in a home with loose foundation or cracked walls can lead to injury or worse.

Double check your home, renters or commercial property insurance policy to see if you have earthquake insurance. It’s crucial to protect yourself, your belongings and your family in case of a disaster.