Why Earthquake Insurance is a Smart Hedge
These days it seems more than ever that we are hearing so much about earthquakes. Rarely a day goes by where the news is not talking about this phenomenon of nature whose frequency and intensity is statistically and clearly on the rise. Homeowners, business owners and even renters would be wise to protect what they have in terms of possessions with easily acquirable and affordable earthquake insurance. A key point to make when talking about this type of insurance is that standard homeowner’s insurance policies do not include coverage related to earthquake damage. This is why everyone, especially those living in areas prone to earthquake activity should carry this vitally important coverage.
Another important distinction about insurance that covers highly unpredictable earthquakes is that most policies in this category come standard with a high deductible. Having a high deductible keeps the premiums at a reasonable rate and is designed to protect property owners from catastrophic loss, where a house is completely destroyed. It is also a fact that wood structure type homes in general carry a lower premium, as compared to brick or block constructed homes. This is often the case due to proven data that shows wood structures resist the ravages of earthquakes much better than brick or block structures.
Earthquake insurance premiums are in large part calculated by considering an industry standard ratio that looks at property value and then compares it with earthquake damage cost analysis. Whatever the calculation or the analysis, one thing is certain, when a powerful earthquake strikes, having insurance in place can make the difference of financial ruin or a manageable and rebuild-able situation. Those living in regions such as California and other tremor prone places should investigate and compare policies to determine which earthquake policy is indeed best suited to their specific needs.
One thing earthquake coverage is intended to cover is the cost associated with living in a place other than the home damaged by an earthquake. This makes sense for a heavily damaged home that is not in a livable condition. Expenses above and beyond what one would normally expect for everyday living should be covered by most earthquake policies. For example, accommodations such as an apartment or hotel are normally included and covered. In addition, the cost of dining out, dry cleaning, and furnishing leases are routinely covered if an earthquake happens in your area.
When someone is the victim of an earthquake or natural disaster, they should quickly notify their insurance provider of the situation. Most insurance companies will then begin a claim based on this information. Typically, the next thing that happens is that a claims adjuster will respond to the place where the damage has occurred and assess the situation. Filing a claim quickly is the first step in recovering from a natural disaster. Everyone hopes that a natural disaster will never happen to them, but the statistics show that they do indeed happen, and are actually becoming more frequent. That is why it pays to be smart and carry earthquake insurance.
This informative article provided to you as a service of the friendly staff at Columbia River Insurance Services Company, with offices located in both Vancouver WA and Portland OR.