Earthquakes & Deductibles

Do I need Earthquake insurance

This is the biggest question I always get.  My answer is always the same.  

You buy insurance in case something happens, if you want to be covered for an earthquake in case it happens, then you need this coverage.  But if you want to play the odds and want to self insure ( have 0% coverage for an EQ) your home for this event, then just know what the risks are.

Due to the New Madrid fault earthquake coverage is something to consider.  According to some statistics there is a 50% we will have a big one in the next 25-50 years.

Does homeowners insurance cover Earthquake automatically

This coverage is not automatic, it must be added to your homeowners for an additional premium.   Most agents add it to the homeowners policy when quoting your insurance, but not all of them do.

What is the cost

Depending on your home type EQ insurance on average cost between $80-$150 per year.  The main factors to the price are:

  • Insured value of your home
  • The style of your home and its buildTravelers Logo
  • The age of the home
  • If you have a brick home the cost will be more
  • Miles from the New Madrid fault

Separate Deductible

Did you know that your deductible on your homeowners is not the same as your earthquake deductible?

Let’s say your home is insured at $200,000 and you have a deductible of $1,000. That $1,000 deductible you pay first if anything happens to your home. 

Anything except Earthquake.

Your earthquake deductible is a certain percentage of your home replacement cost value. The average percentage is 10%-20% depending on the company.

So if you had a 10% deductible on $200,000 home your deductible would be $20,000 dollars!

Check your homeowners policy it will say on the front page of the policy, also known as the declarations page.

Questions? Please call me at the numbers on the right on this page. 

This has been Jason D Cass of JDC Insurance Group

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