What Is Earthquake Insurance?
We are never sure as to what the providence has in store for us. The best we can do is to remain prepared for all the eventualities, untoward incidents and the natural disasters. These days, we have insurance policies that provide protection against any unexpected loss to the life or the business. In the past few years, this domain has further expanded to include several types of disasters that are quite common on this Earth. An earthquake insurance policy has been devised to provide cover against the losses that occur due to the earthquakes, earth movements such as landslides, mudslides, shifting or rising or earth and sinkholes that involves sinking of the earth. However, the earthquake insurance does not cover any losses incurred on the account of tidal waves, tsunamis, floods, even when such disasters have been further compounded by the earthquakes.
It is quite important to keep in mind that the earthquake insurance can not be obtained as an extension of the tenant or homeowner insurance policies but should be subscribed separately. Unlike various homeowner insurance policies, the earthquake insurance policy covers only important losses. The earthquake insurance claim is paid only after taking all the necessary deductibles into consideration.
How Does Earthquake Insurance Work?
The payment procedure of the earthquake insurance is quite similar to the vehicle insurance. Only the damage that is in excess of the deductible is generally paid. Some earthquake insurance policies consider the building structure and its contents as the separate entities. In these cases, any deductible will apply separately to the entire loss that occurs to the structure, damage to the external buildings such as garage, sheds, boundary walls or
a driveway and the contents of the building.
What Does Earthquake Insurance Cover?
Some earthquake insurance providers place stringent conditions before they issue the policy. They usually insist on the inspection of the property before they move forward with the deal. Such inspections consider many aspects, such as the way in which shelves have been fixed, bracing on the interior walls and the way in which the strapping guards have been used for holding the fixtures. However, all these are minor things and may not need substantial amount of money. Ideally, the person interested in the earthquake insurance policy should get the necessary things fixed before inviting any inspection team into their residence.
Once an earthquake takes place, any new insurance policy will not be issued till the expiry of a set moratorium. That is when any change of dangerous aftershocks has completely receded. After any damage due to the earthquake, it is necessary to make your claim under the earthquake insurance policy. This claim should be supported by the requisite documents within a specified time period as per the terms and conditions of the insurance provider. If a person fails to report within a stipulated time, it becomes a valid ground for the insurance provider to reject the claim for the earthquake insurance.
All those who are interested in the earthquake insurance should take their individual circumstances and necessities before taking any decision on purchasing the policy. Sometimes, people may think that their residence is situated in area that may not be earthquake prone but it always pays to be on the safer side when it is the question of one's house. After all, this is your biggest asset!