Earthquake is not a covered peril under a traditional homeowners insurance policy.
Earthquake insurance is a separate endorsement added to your policy. Here are a few key things to note about earthquake insurance:
- Considering that loss due to an earthquake frequently it is a total loss it is not unusual to see high deductibles, normally up to 15% of the property value.
- The allowance for your personal property is much lower. This is because an earthquake is more likely to damage the structure itself, rather than the contents.
- The exclusions are different. An earthquake policy may not cover the loss of landscaping, fencing, swimming pools, chandeliers, or china without specifically being named in the policy.
- Loss of use allowances are lower than a traditional homeowners insurance policy. This is the provision in the insurance policy that provides you lodging while your home is under repair.
- Rates vary depending on location and likelihood of an earthquake in your area.