On August 9, 2019, Madison County experienced a 2.8 magnitude earthquake. Compared to other earthquakes experienced in other areas of the country, that is considered minimal. However, did you know, earthquake damage is typically excluded from homeowner’s insurance policies. If you want earthquake insurance, you have to buy it separately or ask to have it added to your policy by endorsement. According to the Insurance Information Institute, millions of people in over 40 states are at risk of earthquake damage to their homes or personal property.
Do I need earthquake insurance?
Insurance is about protecting yourself and the financial investment you have in your personal property. By not having earthquake insurance, you place yourself at risk of losing everything or sustaining damages to your property that you cannot afford to repair if your home is damaged by an earthquake (Insurance Information Institute, 2018). The New Madrid Fault zone lies within the central Mississippi valley extending from northeastern Arkansas through southeastern Missouri, western Tennessee, Kentucky and southern Illinois. The last major earthquake, magnitude 8, occurred there in 1812. But scientists warn that this was not a freak occurrence.
How much does Earthquake Insurance Cost?
In lower-risk regions coverage can cost as low as 50 cents per $1,000 of coverage. So, for a $250,000 home, a policyholder in a low-risk region might pay as little as $125/year (Earthquake Insurance Explained, 2019). After reviewing the facts, only you can decide whether or not it is worth paying for earthquake insurance. It is tough to predict when an earthquake will occur, and although regions may have long periods of low activity, it only takes one major event to create damage or destruction on your property.
If you would like more information about coverage options and premiums, contact Amanda Edwards at State Farm Insurance amanda@jdorsa.com (769) 300-0351 or your personal home owner’s insurance provider.
References:
Araujo, M. (July 1, 2019). Thinking of Buying Earthquake Insurance? Earthquake Facts, Pros and Cons. The Balance. Retrieved from: https://www.thebalance.com/pros-and-cons-of-buying-earthquake-insurance-2645855
Earthquake Insurance Explained (2019). Value Penguin. Retrieved from: https://www.valuepenguin.com/earthquake-insurance
Insurance Information Institute (October 10, 2018). Background On: Earthquake Insurance and Risks. Retrieved from: https://www.iii.org/article/background-on-earthquake-insurance-and-risk