- Step 1: Know Your Risk
- Step 2: Reduce Your Risk
- Step 3: Prepare For A Disaster
Consider earthquake insurance
Most home insurance does not insure against earthquakes, though fire, flooding, and life insurance may cover some of the related damages. Should you buy earthquake insurance? That depends on your risk, your goals, and the details of the insurance plan offered to you. Insurance offers financial protection against large losses. While earthquake insurance will reimburse you for financial losses, it will not protect you from physical harm or the hassle of temporary relocation.
Typical earthquake insurance has a 15% deductible, meaning 15% or more of your home must be destroyed before an earthquake insurer begins to pay. This may or may not be a good deal. A rational buyer asks, how great is the chance I will exceed my 15% deductible in earthquake damages and am I comfortable with that level of financial risk?
“Exceedence Curves,” which depict the probability of exceeding any % of damage, can help you in your decision and are part of our standard homeowners and homebuyers seismic safety reports. If you would prefer to forge ahead on your own, try using our free Home Damage Estimator tool to simulate an earthquake near your home and calculate the damage.
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