Earthquake insurance is a form of property insurance that pays the policyholder in the event where an earthquake damages a property. Most usual homeowners insurance policies does not cover earthquake damage.
Most earthquake insurance policies feature a high deductible, which surely makes this insurance helpful in a lot of ways if your entire home got destroyed, but not useful if the home only has minor damages. Rates depend on location and the probability of an earthquake in an area. Rates can be cheaper for homes made of wood, which withstand earthquakes far better than homes made of brick.
In the past years, earthquake loss was assessed using a number of mass inventory data and was based mostly on experts’ opinions. Today it is estimated that using a Damage Ratio (DR), a ratio of the earthquake damage money amount to the total value of a building. Another method is the use of HAZUS, a computerized procedure for loss estimation.
Specifically with flood insurance or insurance on damage from a hurricane or other large-scale disasters, insurance companies needs to be careful when assigning this type of insurance, because an earthquake strong enough to destroy one home will probably destroy hundreds of homes in the same area. If one company has written insurance policies on a large number of homes in a particular city, then a devastating earthquake will drain all the company’s resources very quickly. Insurance companies devote much study and effort toward risk management to avert such cases.
Just like everyone else, you want to choose the best earthquake insurance company for you and your home’s need, and we make sure to provide you with all needed information to make the perfect decision today, tomorrow, or whenever you’re ready. Our earthquake insurance options are convenient, easy, and is always available 24/7 online and by phone. We’ll help you with your ATV insurance quote every step of the way, too. Call us today at 801-505-4300, or you may fill up our quote form and submit it, and we’ll do our best to get back to you asap.