Although homeowners insurance is recommended for anyone buying a house, basic policies won’t cover everything. Because of this, you should make sure to find out what it covers and what it doesn’t cover. So, does homeowners insurance cover earthquake damage?
Standard homeowners insurance policies typically do not cover earthquake damage. You will need to purchase an endorsement or a separate policy in order to protect your home financially from damage caused by earthquakes. Although your homeowners insurance policy may not cover earthquake damage, standard policies do cover fire damage, which means that in this case you would be covered.
What does home earthquake damage entail? An earthquake can cause damage to the foundation of your home as well as result in the damage or collapse of your walls or roof, all of which won't be covered by your insurer unless you have additional earthquake coverage. You can usually figure out if you are at risk of earthquake damage by seeing if your home is located nearby a major fault line. Rates will vary depending on how close you are to an earthquake prone area. Deductibles are typically higher for earthquake coverage - you can expect to pay between 5 and 15 percent of your policy's limit as an earthquake deductible.
So, does homeowners insurance cover earthquake damage? In most cases the answer is "yes." If you would like more information on this topic, we encourage you to contact us at CCW Insurance today.