Earthquake risks have risen. Is your home covered by earthquake insurance in case one hits in your area?
Last month, the United States Geological Survey—which tracks earthquakes nationally—found earthquake risks have risen for over half the country.
Even the relatively tectonically-quiet regions of New York and Virginia have rattled in the past few years.
Temblors don’t have to buckle steel in order to have an impact on your house. Even the mighty Washington Monument suffered cracks from a 5.8 shaking more than 80 miles away in 2011—and as far away as New York, some older townhouses saw cracking plaster.
General homeowners insurance often doesn’t cover earthquake damage—that usually costs extra.
Is earthquake insurance worth buying? Read on for a lowdown on this kind of coverage.
What is Covered by Earthquake Insurance
Earthquake insurance typically covers damage to the structure of your home—and possibly other structures on your property (like a shed or an in-law apartment)—from an earthquake or other land movements such as a mudslide.
It will usually include paying for a place to stay while your home is fixed. Those fixes go beyond simple repairs to bringing your home up to meet more modern building codes, if needed.
What Isn’t Covered
Second-hand damage not directly linked to shaking usually isn’t covered. An earthquake ruptures a gas line that then sets your home on fire? Hopefully, your homeowners insurance covers fire, because earthquake insurance likely won’t handle that.
A sinkhole in your lawn that doesn’t directly impact the house likely doesn’t merit pay. Auto damage will fall under your car insurance. Masonry is so sensitive to earth-shaking events that some insurance companies won’t cover masonry at all, and if damage occurs, it may only cover replacing brick with siding—not new brick.
The National Association of Insurance Commissioners has a helpful consumer guide to demonstrate some of these situations.
What It Costs
This depends. In Oregon, where quake risks rank less than California, state officials estimate the owner of an average wooden home in the Portland area might spend $200 to $300 a year for coverage—more for a brick home or a larger building. In some areas, insurers may require home inspections and request the homeowner take preventative measures.
In Washington, insurers may demand you bolt your house to the foundation and brace the walls before they’ll extend coverage. Or it may just come as part of a homeowner’s overall insurance package.
In 2011, earthquake insurance ran just over $700 on average in California, according to the New York Times. But for homeowners living on shaky ground in the San Franciscohills, the cost could rise into thousands of dollars a year—on top of high deductibles.
Despite the relative instability of land there, the prices make it no surprise only about 12% of California homeowners have earthquake insurance.
The Fine Print
Once there’s a quake, expect insurers to wait a few weeks, at least, before offering new policies—and expect those rates to rise. Insurers may also tighten their demands on things like bracing a home or hike their deductibles on a recently-hit area.
If you’ve been on the fence about buying earthquake insurance, consider what could happen if you wait too long. And if you haven’t priced out your options lately, maybe now’s the time to talk to your insurance representative again.
Just to be safe.
Source : realtor.com
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