The need for earthquake insurance in high-risk locales should be a top priority for asset protection. Sadly the relative high cost and complexity deters many from purchasing this most important coverage.
Government and non-profit agencies may step in to help after a powerful earthquake causes widespread destruction, but red tape and other delays can prevent swift relief. Thoroughly researching the best policy for the money will reap the rewards of time well spent if an earthquake hits. The policies and the carrier financial profile vary widely. We prefer the Chubb “basic” cover over any other form of quake coverage. It insured the home, appurtenant structures, personal property and living expenses in a far more robust manner than anyone else. In addition, their claims service is the best. if insured by Chubb, you will be first in line to have your home restored.
Earthquake insurance is frequently not offered on a traditional homeowners policy;
However, many homeowners want some form of insurance coverage for earthquakes. Smaller Insurance companies with limited assets don’t want to go bankrupt if earthquake destruction demands full payment to a number of homeowners. To help satisfy demand, the California Earthquake Authority has been established to cover losses on a very limited basis. Other carriers will provide broader protection if they have the assets to meet the potential losses.
Rates/costs for earthquake insurance depend on the materials used, the age of the home, the soil integrity nearness to fault lines, and the cost to rebuild. All carriers have typically a fifteen % deductible.
The result is earthquake insurance policies with characteristically low premiums and high deductible rates.
Low premiums make it affordable, and high deductibles insure that the homeowner is covered and the insurance company remains in business. In places like California and Japan, the government has teamed up with insurance companies in the creation of special policies and government agencies to provide homeowners with better options for earthquake insurance. Homeowners are also encouraged to “retrofit” or reinforce their homes to meet seismic safety standards in order to minimize earthquake damage and keep insurance premiums at a reasonable level.
No one likes to think about it, but earthquakes are a part of life. In a high-risk area, prevention is impossible, but protection in the form of earthquake insurance is advisable.