What Does Earthquake Insurance Cover?

Earthquakes don't happen every day, thank God! This is, of course, good news. But there is also bad news. When they do happen, the damage can be really severe. Your property can be damaged because of an earthquake. Therefore, it is worth finding out in advance what exactly earthquake insurance covers and if you will be able to claim compensation from your insurance company in case of this unforeseen situation. We've decided to reveal this issue in detail in our article.

Homeowners Insurance Policy: Does It Cover Earthquake Damage?

Most US residents and citizens have a standard homeowners insurance policy (HO3), which covers all major types of damage including:

leaks and damage caused by water,
wind damage,
damage caused by other natural disasters.

In general, a homeowners insurance policy covers almost all types of natural damage. But, unfortunately, not 100% of them. This means that in case of damage caused by an earthquake, alas, you are not protected. Homeowners insurance does not cover earthquake damage. The reason for this is that earthquakes do not happen very often in general. In addition, the damage they cause can be significant. Earthquakes often take homes down to their foundations, which requires too much compensation from insurance companies. Apparently, they are unwilling to fork it out. Insurance companies don't want to part with their money, which applies to damage caused by earthquakes among other things. Moreover, in the United States, hundreds of households suffer from earthquakes every year.

What to Do If You Want To Insure Your Property Against Earthquake Damage?

First of all, let's take a look at what exactly might your homeowners or tenants policy cover. Despite the fact that you are not compensated for the damage caused by an earthquake in this way, you can claim compensation for the factors accompanying the earthquake.

If your basement is flooded after an earthquake, you can apply for flood compensation.
If your house is on fire because of an earthquake, for example, as a result of a short circuit, you can apply for compensation for damage caused by fire. Likewise, even if the fire is small, you can apply for compensation for smoke damage.
If your roof has got damaged by falling debris and branches as a result of an earthquake in the rain, you can claim compensation for storm damage.

In addition, you can take out a specific insurance policy to be compensated for earthquake damage. Such a policy will require about $800 additional costs from you annually. Should you apply for it? Here are three basic questions you can ask yourself to realize the necessity of such a policy.

Would you be able to pay for the restoration or reconstruction of your home if it was damaged by an earthquake?
Would you have an opportunity to compensate for the cost of damaged personal belongings and furniture in the event of an earthquake?
Would it be hard for you to pay extra for an earthquake insurance policy on a monthly basis?
Would you have where to live or the money to pay for temporary housing if your home was damaged by an earthquake?

If you can give an affirmative answer to 3-4 questions, you do not need an earthquake insurance policy. But you must take into account your region of residence. If you live in an area of high seismic activity (e.g. California, Hawaii, Colorado, Ohio, Washington, Alaska), you need such a policy as much as air to breathe. This earthquake insurance covers all major damage options. Having it, you can claim enough money to rebuild your home even if the damage is too severe.

And one more piece of advice. If you are not sure how to properly apply for compensation for earthquake damage, it is best to contact a public adjuster. Such a specialist will definitely help you knock as much money from the insurance company as possible, classify the types of damage correctly and assess them with the maximum benefit for you.

What else can you get from your public adjuster for earthquake damage? There are several merits you'll appreciate.

You will receive accurate and up-to-date information on the extent and severity of the damage.
Your public adjuster will help you argue with the insurance company and get the highest possible compensation for your insured event.
You will not waste your time filling out documents and communicating with managers of insurance companies.
You can focus on caring for your loved ones and rebuilding your home, rather than worrying about paperwork for the insurance company.
You will definitely be sure that things are going in the right way because your public adjuster is in charge of them.

An earthquake is a disaster for all homeowners. But, even this can be compensated by the insurance company if you choose the right strategy and hire a public adjuster.