What is Earthquake Insurance?
Earthquake property insurance is insurance that will pay you the policyholder if your property were to suffer damage from an earthquake. Many insurance policies available to homeowners do not offer earthquake coverage.
High deductibles are common with most earthquake insurance, which can be very useful if your home is completely destroyed, but not if the home is only slightly damaged, and the rates can depend on location and earthquake probability as well. Believe it or not, you will find cheaper insurance rates for a home that is made from wood than a home that is made of brick. Wood will fair the earthquake better. Insurance companies must be very cautious when issuing this type of insurance coverage (which also includes flood and hurricane insurance) because it is fair to assume that an earthquake large enough to devastate one home has the potential to destroy an entire neighborhood. An insurance company can have a quick drain of resources if they have written a large number of insurance policies in a certain city that may have been recently damaged by an earthquake. You will learn the truth that hard working insurance companies will do everything they can to avoid this type of cases with strong devoted study efforts towards risk management.
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