In the insurance business the following equation is oft used: Hazard + exposure + vulnerability = risk. To the common person, it may not mean much, but it would certainly become important in the event of an earthquake. Often people only think of earthquake insurance when considering a state like California. However, there are about 75 million people in 40 states who might be at risk of an earthquake at any moment in time.
Earthquake insurance provides protection from property damage resulting from seismic activity. The home, its content within and other items can be replaced or repaired if one has coverage in place. Often there is also coverage provided for temporary expenses incurred while living outside of a damaged domicile.
The Federal Emergency Management Agency (FEMA) has identified several high risk areas. If you reside in one of these areas it would very much behoove you to explore the various coverage options even if, as a homeowner, your mortgage provider does not require it. A determining factor would be if you are comfortable and able in providing out-of-pocket costs for the renovation or rebuilding of your property in the aftermath of a damaging trembler. Often the normal homeowner policy will not cover such damages.
Typical earthquake insurance policies cover damage to the structure and its interior contents. Repairs are paid for if there is any structural damage and anything within the walls of the home can also be covered. If a policy does not cover all your desired contents then you might consider adding additional coverage. Any personal item can be listed and covered as a part of the whole policy. If your are forced to seek a temporary dwelling as a result of loss of access to your home in the event of a quake, coverage can also help to defray these expenses.
In the aftermath of such a disaster it is extraordinarily frustrating to wait for promised assistance from the government. While you wait, you are simply out of luck when it come to accessing funding for necessary repairs. Earthquake insurance eliminates much of the bureaucratic nightmare that comes with the need to complete repairs as soon as possible for your property when disaster has struck. It also helps to keep expenses from becoming unmanageable by avoiding the later out-of-pocket costs surely to come. Anyone who lives in one of these high risk areas is eligible for insurance coverage to help pay all rebuilding costs as a result of an earthquake.
Even if you dont live in a normally seismically active area, earthquakes randomly occur all over the country. Unexpected places like Tennessee, Arkansas and Mississippi have all been hit with major earthquakes and, in some cases, terrifically powerful ones over the millennia. An example of this is the New Madrid Seismic Zone, which is an area in the southern and midwestern United States that is particularly notorious. Learn the risks of your area and then endeavor to get yourself the appropriate coverage.