For most of us, our home is our most valuable investment. Earthquakes can bring everything crashing down within a matter of minutes.
Do I Need Earthquake Insurance?
Most standard homeowners policies do not cover earthquakes. This coverage requires a special endorsement on your current policy, or a separate earthquake policy.
In Utah, Earthquake Insurance provides coverage so you can repair or rebuild your home after an earthquake. It can also cover your personal property inside your home and detached structures like garages and sheds. Beyond the physical damage, earthquake insurance can compensate you for additional living expenses for things like temporary housing while your home is being rebuilt.
How does Earthquake Insurance Work?
Coverage is based on total replacement cost for your home. This is determined by the current market value of your home.
The deductible for an earthquake policy is substantial.
It is typically 5-10% of your policy amount.
Earhquake insurance is meant to be a catastrophic scenario. If your house is destroyed by an earthquake, you will be responsible tor that 5-10% of your home rebuild, and the rest will be covered by the insurance carrier.
There are two options for earthquake insurance:
One is a “Basic” package: solely the home rebuild.
The second option is a “Standard” package, which includes personal property (furniture, appliances, home décor) as well as loss of use (hotel allowance during rebuild.)
We are happy to give you quotes on both the “basic” and “standand” packages and let you decide which one suits your needs.