It is unlikely that your homeowner’s insurance covers earthquake damage. Earthquake insurance is typically needed to cover any damages caused by an earthquake. This means you must purchase the coverage separately from your homeowner’s policy. The amount of your premium depends on where the insured property is situated. If you live in a high risk area, then you are likely to pay a higher premium. This coverage is also available for people who rent.
Earthquake insurance provides coverage for your home and your personal belongings. There might also be an allowance for living expenses while your home is being repaired. With this type of policy, the home and personal property coverage each have a separate deductible. You might also have a third deductible for the additional living expenses coverage.
Filing a Claim
When you file a claim for earthquake damage, your deductible is usually between 10 and 20 percent of the policy limit. If your claim is $100,000 with a 20 percent deductible, then you pay $20,000 while the insurer pays $80,000. Without earthquake coverage you would need to pay the entire cost because homeowner’s insurance would not cover it.
This coverage might not concern you if you are not in an earthquake zone. But for anyone in such a zone earthquake insurance is a wise decision. You’ll probably want it if you live anywhere on or near Los Angeles or Hawaii.