Earthquake Insurance – We do not know what Providence has in store for us. The best thing humans can do is to be prepared against natural disasters or unexpected events.
Today, insurance offers financial protection against loss for a person or business. Over the years, the domain has expanded to include almost all types of disasters that commonly occur on Earth. Earthquake insurance is a policy that covers losses due to earthquakes or earth movements such as mud flow, landslides, landslides or sinkholes that cause subsidence, uplift or displacement of land. But it does not include losses due to floods and tsunamis – although these disasters are made worse by earthquakes.
The important thing to know is that earthquake insurance is not part of the homeowner’s and renter’s insurance policy. However, it is an entirely different agreement that one has to sign on one’s own.
Earthquake insurance
Unlike other homeowners’ policies – mainly covers major losses. The claim is usually paid after accounting for all deductibles, which are generally between 10% and 25%. Given the current trend, franchising is moving up the scale.
The payment structure works like car insurance. Damages exceeding the deductibles are payable only. Some policies consider structure and content as different entities. In these cases, the deductible is levied separately on the total loss of the structure, contents and damage to the external structure such as a shed, garage, retaining wall or road.
Strict requirements policy
Some insurance providers impose strict requirements before issuing a policy – they insist on inspecting the property before signing the contract. For example, many insurance companies require their homes to be securely locked in the basement. The inspection also considers bracing on the internal walls, the way in which the shelves are installed and the way in which straps are used to secure the equipment. But this isn’t a major overhaul and it isn’t expensive. Ideally, the potential customer should be clear before inviting the insurance company’s inspection team to their home.
After an earthquake, no more earthquake insurance policies will be issued until the declared moratorium expires; this after the chance of more damaging aftershocks persisted.
Once damage has occurred, it is very important to file a claim, supported by all necessary documents, within the time period specified in the company’s terms and conditions. Failure to report within the specified time is a valid reason for the insurance company to deny the insurance claim.
Consumers should consider terms and conditions before applying for earthquake insurance. Sometimes it can be said that the house is in a low risk area. But it’s better to be on the safer side of the house. After all, our home is our greatest asset.
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