5 Important Facts about Earthquake Insurance
What do you know about earthquake insurance? If you are like many people, you may think you don’t need it. You may not realize the value of purchasing a policy like this, especially if you live in an area that’s prone to earthquakes. Take a look at five important facts you should know about earthquake insurance policies.
1. Don’t Assume it’s Too Expensive
Many people believe they cannot obtain earthquake policies because they are too expensive. It is true that these policies can have high premiums in some areas where earthquakes are common. However, the rates on earthquake insurance policies change all of the time. The costs vary from one area to the next as well. Get a quote from your independent insurance agent to see how affordable they are to you.
2. Do You Know the Risks?
Many individuals don’t purchase insurance because they don’t see the value in having it. However, it is estimated that if a large earthquake occurred in any major populated area in the United States, it could lead to as much as $200 billion worth of collective damage and losses. It is a costly risk.
3. Not All Policies are the Same
When comparing these plans, learn what’s specifically included. For example, you may purchase a policy that covers the costs of property you’ve lost. However, not all policies cover the cost of rebuilding. You’ll need to ensure all of your assets are covered.
4. It is Nearly Impossible to Predict Where and When Earthquakes Will Occur
While there is some predictability about earthquakes, there is no way to really know where one is going to hit. And, there is no warning system available. This means that there is no way to know when you and your home are at the highest level of risk.
5. Experts Believe Numerous Earthquakes Will Occur
Based on seismic activity, records and estimated guesses, most professionals believe that numerous events will occur over the next two years. Minor to moderate earthquakes will occur throughout the country during that time. It is also likely that at least one major earthquake will occur in the United States within the next 25 years.
The best way to protect your home’s value and your financial well-being in an earthquake-prone area is to invest in earthquake insurance. A plan like this can offer as much coverage as necessary to help you to rebuild your life after an event like this occurs.