Earthquake Insurance: What You Need to Know

Earthquake Insurance: What You Need to Know

Being a local real estate expert, friends and clients call me all the time with questions and I’m here for it! Can you guess the latest topic that’s been all the buzz? You guessed it, earthquake insurance. After that 5.1 earthquake earlier this month, Oklahomans want to know if earthquake insurance is important.

My best advice is to connect with your trusted insurance agent or contact me for a few referrals if you are needing one. Also, here are some important points to consider:

Why should consumers buy earthquake insurance? Earthquakes are not covered under typical homeowners or renters policies and can lead to significant property damage. Consumers need to assess how they would manage the costs of recovery should they be impacted.

How can consumers purchase earthquake coverage? Earthquake coverage can be added as an endorsement to home insurance policies, or obtained as a stand-alone policy from select insurance providers.

What does earthquake insurance cover? It covers home repairs, personal property damage, increased repair costs to meet building codes, stabilization of land, and extra living expenses during repairs. However, it typically does not cover land damage, vehicle damage, or masonry veneer replacement.

How much coverage should be bought and how much does it cost? The price of adding earthquake insurance is a small percentage of the underlying homeowners policy cost, varying based on factors such as location, age, and construction of the property.

What is the deductible and how is it calculated? Earthquake insurance carries a separate and substantial deductible, usually calculated as a percentage of the insured property’s value.

How can consumers learn more about earthquake insurance? Consumers can visit the Oklahoma Insurance Department website for specific earthquake insurance facts, tips, and resources.

For more detailed information, including tips and downloadable guides, visit the Oklahoma Insurance Department website at OID – Earthquake Insurance.