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Is earthquake insurance something you need?Where did the most powerful earthquake in U.S. history hit? The answer is NOT California, but Missouri, where a quake measuring 8.4 on the Richter scale occurred in 1811, ringing church bells as far away as Boston.The point is, earthquakes can hit anywhere in the United States. The chance of a serious earthquake in the East is far lower than in the West, but the risk exists. What’s more, the solid bedrock underlying the eastern U.S. is a superb shock transmitter that could affect buildings far from the quake center. We’re not suggesting anyone hide under a table. We are suggesting that homeowners consider the wisdom and costs of earthquake insurance. Homeowners policies don’t protect you. Your basic homeowners insurance policy provides NO coverage for earthquake damage. (In fact, it excludes coverage for damage caused by any type of earth movement or shifting.) However, in some areas you can purchase a special personal property endorsement that protects your household contents. Special earthquake endorsements are now available to cover damage to your property—home, structure, and household contents—up to the same limits you currently carry for your building and contents. You would also be paid for any increase in normal living expenses while your home was being rebuilt. If you purchase total replacement cost coverage, you will be paid enough to rebuild your home. In most states, this same endorsement also covers damage covered by tremors or land shock waves due to volcanic eruption. Damage from a flood or tidal wave—whether or not caused by an earthquake—is NOT covered under you basic homeowners policy or the special earthquake endorsement. You need separate insurance to protect you home from flood damage due to an earthquake or other cause. If you’d feel more secure with an earthquake endorsement, contact your independent insurance agent.
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