Questions and Answers About Earthquake Insurance

What You Need  to Know About Earthquake Insurance


Earthquakes have become a concern in Oklahoma over the past several years. Because of this, you may be wondering if you need to purchase earthquake insurance. 


Should I purchase earthquake insurance?

Earthquake damage is not covered under the vast majority of homeowners or renters policies. Although earthquake coverage is an available option that you can purchase and add to most homeowners policies, not all insurance companies offer the earthquake option.  You will need to ask your agent if that coverage is available. A few companies also offer earthquake coverage as a stand-alone policy, but the cost is usually much higher compared to adding the coverage to an existing policy.


How much does earthquake coverage cost?

The cost of adding earthquake coverage to your homeowners policy can vary based on several factors, but it usually costs between $100 and $300 per year. The premium can be higher for a brick or rock house than for a wood frame house.


Is there a deductible for a covered loss?

The typical deductible for earthquake coverage is quite substantial. The deductible is usually 5% or 10% of the limit of coverage that is shown on the policy. For example, if your dwelling coverage has a limit of $100,000 then your deductible would be $5000 with a 5% deductible or $10,000 with a 10% deductible. In addition to the large deductible previously mentioned, there are usually separate deductibles for detached structures and personal property (if your policy provides coverage for these items).


One final note

Some earthquake coverage does not cover the cost of repairs to brick or rock on the outside of your home. So, repairing damage to the brick or rock veneer on your home would be an out-of-pocket expense.



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