## Don’t Shake Your Finances: Why Homeowners Should Consider Earthquake Insurance
Living in an earthquake-prone area means accepting a certain level of risk. We know to prepare emergency kits, practice drop, cover, and hold on, but have you considered the financial implications of a significant quake? Standard homeowners insurance policies typically **don’t** cover earthquake damage, leaving you footing the bill for potentially devastating repairs.
That’s where earthquake insurance comes in. While the cost can seem like an extra burden, especially on top of your existing homeowners policy, it’s an investment in your peace of mind and financial security. Imagine your home suffers structural damage after a large earthquake. Without earthquake insurance, you could be facing hundreds of thousands of dollars in repairs, potentially even needing to demolish and rebuild your home entirely.
**What does earthquake insurance cover?** Typically, it covers damage to your dwelling, personal property (furniture, electronics, etc.), and sometimes even additional living expenses if you’re forced to temporarily relocate while your home is being repaired.
**Why might you need it?**
* **Location, Location, Location:** If you live in an area with a history of seismic activity or near a known fault line, earthquake insurance is almost essential.
* **Financial Risk:** Could you afford to repair or rebuild your home after a major earthquake? If the answer is no, earthquake insurance can be a lifesaver.
* **Mortgage Requirements:** Some lenders in high-risk areas may require you to carry earthquake insurance.
**Keep in mind that earthquake insurance often comes with a deductible, which can be quite high (10-20% of the insured value).** This means you’ll need to pay that amount out-of-pocket before your insurance kicks in.
Ultimately, deciding whether to purchase earthquake insurance is a personal choice. Weigh the cost against the potential risk and your ability to financially recover from a major earthquake. Get quotes from multiple insurance providers, understand the coverage details and deductible, and make an informed decision that protects your home and your financial future. Don’t wait until the ground starts shaking to think about this crucial piece of protection.