Do You Need EarthQuake Insurance?
Lots of people tend to associate earthquakes with California, but you should know that there are earthquake zones all over the country. Actually, if you are concerned about coverage on your home or business property, you should not just concern yourself with earthquakes. Typical home and business property insurance policies might not cover any type of land movement.
Does Your Property Insurance Cover Land Movement?
What is land movement? This could include earthquakes, landslides, and sinkholes. Different types of land movement can occur almost anywhere. There are maps of high-risk areas where different types of land movement might be more likely to occur.
Sometimes the land moves because of natural formations, but land movement might also be caused because of construction or drilling activities near your house or business.
What is Earthquake Insurance?
You might either add a rider to your existing policy or purchase a separate policy that covers land movement. If you have this coverage, earthquake insurance can compensate you for any loss or damage caused by earthquakes, sinkholes, landslides, or other types of land movement. If you lack this coverage, your insurer might deny your property damage claim.
If you plan to add this coverage, see if it covers both your building and the property inside of your building. Some policies only cover buildings, but you might keep thousands of dollars worth of possessions inside of your home or business building too.
If you can add the additional coverage to your existing policy, it might increase your premiums by about 10 percent. Separate policies might cost about .50 per every $1,000 of coverage. Of course, your own rates will depend upon where you live. In high-risk zones it will be more expensive.
Your Homeowners Insurance Probably Does Not Cover Earthquakes
In any case, you should review your current coverage to see if it already covers land movement. If not, you could be taking a big risk. Earthquakes, landslides, and sinkholes can easily cause as much damage as any fire or flood.