Do I need earthquake insurance?
Whether or not you need earthquake insurance is up to you. Earthquake insurance can be expensive, and it does carry a much higher deductible than your regular homeowner’s insurance. Just remember, losses from earthquakes can be substantial. For insurance companies, the losses in an area go beyond property damage claims on homeowners policies.
Earthquakes can cause losses and claims under auto, life, and disability insurance as well. So if you live in an earthquake-prone area, in a house that is likely to suffer a lot of damage, you’re going to pay a high premium for the insurance coverage. By the way, coverage for the building and the contents are separate under earthquake insurance; the deductible for each is also separate and is generally around 10 percent of the amount of coverage.
June 26, 2011