In many places, earthquake insurance is an absolute necessity. Without it, individuals, families and businesses could be put in financial peril in the event of an earthquake. Before you purchase earthquake coverage, however, you should learn more about it. Below is an explanation of what it is, how it works and what kind of policy holders may benefit from this kind of coverage.
Earthquake insurance protects against the financial hardship you may face as a result of the damaged cause during an earthquake. Earthquakes occur when the ground shakes due to the movement of tectonic plates deep below the surface. This can create great damage to any buildings within the zone of impact and can often result in deaths. Earthquake coverage can protect a person or business against the damage caused by an earthquake.
What Does It Cover?
The kind of damage an earthquake policy usually protects against is known as structural damage. This is the damage done to a building during an earthquake. The insurance company may then pay for a remodel of the building to make it safe and livable again. If the structural damage is too great, the insurance company may pay for the demolition of the building and the construction of a new one to replace it.
Earthquake coverage may also pay for other kinds of damage as well. This may include coverage for the destruction of property like automobiles and valuables. The policy may also provide funds to allow a family to relocate while their home is being repaired.
Who Does It Benefit Most?
Earthquake coverage is most advantageous for individuals and businesses near fault lines. It’s good to perform some research to find out how close you live to a fault line as well as that area’s history of earthquakes.
Even if an earthquake has not occurred recently, they can still pose a great risk for homeowners and businesses in many places. Even after decades without an earthquake, one can happen suddenly without warning. The devastation produced can be catastrophic. Earthquake coverage can help a family or business quickly regain its footing instead of suffering from severe financial hardships.