How earthquake insurance works
Some earthquake insurers may require an inspection of your property before they'll issue you a policy. They may even have different coverage requirements, such as:
- It provides coverage if your home is destroyed by an earthquake.
- It's a separate endorsement you must buy and add to your homeowner or renter policy.
- You can also buy a stand-alone policy separate from your homeowner policy.
- It's usually sold with deductibles equaling 10 to 25 percent of the structure’s policy limit.
- It only pays for damages that exceed the deductible.
- There may be a separate deductible for contents, structure and unattached structures like garages, sheds, driveways, or retaining walls.
- Generally, this coverage isn't available to buy for a period of time after an earthquake.
Some earthquake insurers may require an inspection of your property before they'll issue you a policy. They may even have different coverage requirements, such as:
- The location of your home
- Your home must be bolted to its foundation
- The location and bracing of your home's interior walls
- You must have strapping guards to secure fixtures, such as hot-water heaters
- Landslides
- Settlements
- Mudflows
- Rising, sinking and contracting of earth
- Floods
- Tidal waves or tsunamis - even when caused by an earthquake