Earthquake Insurance Facts
Earthquake insurance is a smart choice in many locales. Without this coverage, businesses and families living in earthquake zones could face financial ruin. An earthquake doesn’t always cause catastrophic damage, but it can. That’s why this coverage is recommended for people who live near or on fault lines. This also includes business owners in these areas.
Protection after an Earthquake
Earthquake policies are concerned with structural damage. This is the damage done to a building during an earthquake. The insurance company will pay for repairs, and help make the building safe for use. If the building is beyond repair, then the insurance company may help demolish the building and help build a new one.
Earthquake insurance focuses on structural damage because it’s common during an earthquake. The ground shakes during an earthquake, which is caused by the movement of tectonic plates deep below the earth’s surface. This often damages buildings within the zone of impact. Earthquake coverage provides financial assistance for recovery.
Earthquake coverage may also pay for damage to personal belongings. It’s also possible that coverage will pay temporary housing if a family is displaced. However, that depends on the specifics of the policy.
As mentioned earlier, earthquake coverage is for individuals and businesses near fault lines. If you’re unsure about your location, then contact an insurance agent for guidance.
Even if it’s been awhile since an earthquake occurred, that doesn’t mean insurance isn’t necessary. Anyone who lives near or on a fault line is at risk. This includes business owners who own property near or on a fault line. Earthquake insurance can help a family or business recover with minimal financial loss.