Everyone is setting goals now that it’s a new year (and a new decade!). Do your goals include retirement, getting your finances in order, or protecting your nest egg? You might be one of the many asking themselves if getting earthquake insurance should be a priority, or if it is worth getting earthquake insurance at all.
We’ve searched the internet to compile this list of the top questions asked when people are shopping for earthquake insurance.
These are the Top 4 Earthquake Insurance Questions
- Do I need full earthquake insurance coverage or limited coverage? How much coverage do I need?
- What is the average deductible?
- How do I know if the earthquake insurance carrier is financially secure?
- How much does earthquake insurance cost?
Do I need full earthquake insurance coverage or limited coverage? How much coverage do I need?
Your earthquake insurance policy should reflect the amount of coverage that you need based on a few factors:
- The amount of equity you have in your home
- Your risk factor
- How much you’re willing to pay to repair or replace your home
- Your retirement plan and nest egg
- The location of your home
- Protection against demand surge
Coverage depends on the amount you’re willing to spend to repair or replace your home and its contents. Earthquake insurance coverage helps you prepare financially for devastating earthquake events. Your home equity is an essential part of your life savings, and it could be at risk.
With an earthquake policy, you could have coverage for repairs to your home, costs of temporary housing while repairing your home, and replacement of your personal belongings in your home. This coverage doesn’t just fix your home but can cover the cost of restoring your home to its same standards and unique features.
There are a couple of types of policies you could secure based on how much coverage you want. There are limited coverage policies and full coverage policies. A limited coverage policy can help cover the dwelling (your home) and offer limited coverages for other things, like contents or temporary living expenses. A full-coverage policy provides comprehensive protection for your home and other limits. To compare the two for coverages and costs, you can get a quote to see the premiums for each type of policy for your property.
What is the average earthquake insurance deductible?
Your deductible will be a percentage of the total coverage you have selected. Because the deductible is a percentage of coverage, it varies by the location of the property.
Your earthquake policy will offer deductible options for you to review. Depending on which option you choose and your home’s location, you could have a deductible as low as 10%. Choosing a higher deductible could also help with reducing your premium–it all depends on what best fits your needs. If you get a quote, you’ll be able to compare how the deductible options can make a difference in your premium.
How do I know if the earthquake insurance carrier is financially secure?
Many homeowners are concerned that a reliable carrier won’t provide an earthquake insurance policy. In the event of an earthquake, especially a large one, people often think that insurance carriers can’t handle so many claims on such a large scale. This is why it is essential to do your research on the carrier when considering who to choose.
So, when considering an earthquake insurance carrier, look at their history of claims experience and their financial strength rating. You can check A.M. Best Company, the leading expert of financial strength ratings, for a review of insurance carriers’ financial stability scores. For example, GeoVera Insurance Company is rated by A.M. Best as an “A” (Excellent) in addition to being part of a group with two decades’ of strong claims history for catastrophic risks.
How much does earthquake insurance cost? Is it worth it?
Earthquake insurance companies use a few factors to determine how much your earthquake insurance premium will be. These factors include your home’s location, the construction type of your home, the cost to rebuild your home, and the deductible amount that you select. For more details, check out our guide, “How is my earthquake insurance coverage limit calculated?“.
The best way to find out how much a policy will cost and if it is worth it is to get an earthquake insurance quote and consider if you could cover the cost of earthquake damage without insurance coverage. Get a quote here, or visit our site to find an earthquake agent near you for expert advice.