May 28th, 2024 | 2 weeks ago | Bamboo Communications

    Don’t overlook earthquake insurance

    We know what some of you are thinking – earthquake insurance is one of those unnecessary coverages that you’ll pay for, but probably won’t end up using. We’re here to shake that thinking up (pun intended). If you’re in an area that’s prone to earthquakes or has experienced an earthquake in the past few decades, it’s worth it to look into getting earthquake insurance. Earthquakes can cause intense damage, costing thousands of dollars. In fact, a report conducted in 2023 by the U.S. Geological Survey and FEMA estimates that earthquake damage costs the U.S. $14.7 billion dollars annually – an increase of 140% over the previous estimate from 2o17.*

    What is earthquake insurance, and what does it cover? 

    Earthquake insurance is a specialized type of insurance designed specifically for covering the cost and repairs of damage caused by earthquakes (since your standard homeowners won’t).  Earthquake insurance coverage ranges from structural damage to your home (e.g., your roof, damaged walls, etc.) to replacement of personal property (e.g., your furniture, appliances, etc.). If you need to find a temporary place to stay, it can also help to cover those expenses. Keep in mind, this isn’t a one-policy-covers-all type of insurance, so make sure you run through the details of exactly what your specific earthquake insurance policy covers with your agent. 

    Why do I need earthquake insurance? I have a homeowners policy. 

    Your homeowners policy will cover many things; but one thing it doesn’t cover is damage to your home, structures, and personal property caused by earth movement (i.e., an earthquake). If your home is in an earthquake-prone area, we highly recommend looking into obtaining earthquake insurance. Good news! Our Bamboo Insurance Agency can help with finding options for you. 

    What factors impact the cost of earthquake insurance? 

    When obtaining earthquake insurance, your location, the cost of rebuilding your home, and risk tolerance are considered. All these factors impact the cost.  

    Does my renters insurance cover earthquakes? 

    Unfortunately, it doesn’t. Renters insurance is great for covering situations like vandalism, theft, fire, and other events; however, it generally doesn’t cause damage directly caused by earthquakes. 

    Which one is better to have? Homeowners/renters or earthquake? 

    If you live in an earthquake-prone area, you should look at obtaining both. Let’s say an earthquake causes a fire, and that fire causes damage to your home. In that situation, your homeowners or renters insurance policy would come in for the save. However, if the earthquake directly causes damage to your home, that’s when that earthquake insurance would really come in handy. 

    Looking to learn more and potentially get earthquake coverage? 

    Connect with one of our experienced Bamboo Agents 👉 Contact Us Page

     

    *Source: temblor.net