Can I Get Earthquake Insurance?
Is your home or business in an area that’s prone to earthquakes? If so, you may want to consider purchasing insurance that provides coverage if you have a loss due to earthquake activity. In order to qualify for earthquake insurance, you must have an existing homeowners, renters, or business insurance policy. Depending on who you’re insured with, earthquake coverage may either be available as an add-on to your existing coverage or a stand-alone policy.
How Do I Reduce The Cost Of Earthquake Insurance?
Earthquake coverage tends to be fairly expensive because those who purchase it usually make claims at some point during the life of the policy. Many factors are considered in determining the cost of earthquake coverage. Some of these factors, such as ZIP code, the age of the structure(s), the number of stories in the structure, the structure’s rebuilding cost, the soil type on the property, the building materials used in the structure, and an area’s proximity to fault lines and seismic activity are beyond the owner’s control. There are some things an owner can address, however, which mitigate the risk of damage from an earthquake and may reduce the cost of insurance.
In general, the more resistant your building is to earthquake damage, the less you’re going to have to pay to insure it.