Insurance companies always consider hazard, exposure and vulnerability when accessing risk. If you live in an area that is high risk for any natural disaster, then you need insurance coverage. This may not sound important, but if you live in an earthquake zone, then earthquake insurance is important. You don’t have to live in California to need earthquake insurance. There are other states where people are at risk for earthquakes.
Most homeowners do not realize that earthquake coverage is extra. Unless you specifically purchase earthquake coverage, then it is not included in your insurance policy for your home. Most people find this out after an earthquake occurs and they cannot receive help from insurance.
The Federal Emergency Management Agency has identified high-risk areas. Anyone in these areas should consider earthquake coverage. The coverage may not be mandatory, but it is in your best interest to protect yourself. Even if you believe you could pay out-of-pocket for any damages, insurance will protect you in case damages cost more than you expect. Some mortgage providers even require homeowners in earthquake zones to get the proper coverage before issuing a mortgage.
A basic earthquake insurance policy covers damage to the building and its contents. If the policy does not cover everything you want, then you can get additional coverage for individual items.
Earthquake insurance can also help with expenses if you must leave your home. Another benefit of insurance is that you do not have to wait for government assistance. In the aftermath of a disaster, the government is sometimes slow to respond. With insurance, you can have funding to start repairs while waiting for government assistance.
Even if you are not in an earthquake zone, earthquakes can occur in unexpected states, such as in Tennessee and Arkansas. You could live on a fault line and not know it. An example of this is the New Madrid Seismic Zone, which is a fault line in the southern and midwestern United States. Find out if you are in an earthquake zone. If so, then get the coverage you need.