Earthquake Insurance: Do You Need it?

Like flood damage, your standard home insurance doesn’t protect your home against earthquakes. Luckily, you can purchase stand-alone earthquake insurance from Voi Insurance Solutions LLC to protect your home when landslides or land movements damage your home.

The basics of earthquake insurance

You may be asking why standard home insurance doesn’t cover earthquakes. Unlike a fire or theft, earthquakes will likely affect many people. When you think about the compensation involved, it can easily bankrupt an insurance company. Earthquake insurance is designed to take into account the massive damage that an earthquake would cause.

You might think an earthquake is far from you, but statistics state otherwise. California accounts for about 90% of the country’s earthquakes. Unfortunately, only 10% of California residents have this coverage. This means about 90% of the residents are exposed when landslides or earth movements strike.

Why do I need earthquake insurance?

Earthquakes can’t be accurately predicted, but what you do financially can be. Earthquake insurance cushions you financially when you least expect it. Traditional earthquake insurance covers “pure losses.” This means that your insurer will assess the loss and reimburse you a certain amount — this differs from one policyholder to another.

Ultimately, earthquake insurance covers your dwelling structure and the contents inside. Earthquake insurance compensates you for the loss up to the coverage limit. Better yet, earthquake insurance covers “loss of use.” What does this mean? If an earthquake causes significant damage to your house, this policy pays for additional living expenses you might incur in a hotel or a shelter similar to your home.

Pro-tip: Earthquake insurance may exclude certain assets, like your vehicles, fence, pool, and high-value items. Always check with your insurer to understand your earthquake insurance exclusions.

Earthquake insurance in California

Would you want to protect your home with earthquake insurance? You are on the right track. Don’t hesitate to contact Voi Insurance Solutions LLC for a competitive quote.