Earthquake Insurance

Earthquake Insurance

Earthquake Insurance
We never know what the​ providence has in​ store for us .​
The best thing we humans can do is​ to​ remain prepared against any natural disasters or​ untoward incidents .​
Nowadays,​ insurance provides financial protection against losses for persons or​ businesses .​
Over the​ years,​ the​ domain has expanded to​ encompass almost every type of​ disaster that is​ of​ common occurrence on​ earth .​
Earthquake insurance is​ one such policy that covers one from losses incurred due to​ a​ cataclysmic earthquake or​ any earth movement such as​ mudflow,​ landslide,​ mudslide or​ sinkhole that involves the​ sinking,​ rising or​ shifting of​ earth .​
But it​ excludes losses incurred due to​ floods and tidal waves – even if​ the​ disaster had been compounded by an​ earthquake .​
An important thing one should realize is​ that earthquake insurance is​ not a​ part of​ the​ homeowner and tenant insurance policies .​
Instead,​ it​ is​ a​ different deal altogether that one needs to​ subscribe separately .​
Earthquake insurance – unlike other homeowner polices – mainly covers major losses .​
The claim is​ usually paid after accounting for all deductibles,​ which in​ the​ general case falls between 10% and 25% .​
Given the​ present trend,​ the​ deductibles are on​ a​ spiral up the​ scale .​
The payment structure works much like the​ auto insurance .​
The damage that exceeds the​ deductibles is​ only paid .​
Some policies take in​ to​ account,​ the​ structure and contents as​ different entities .​
In such cases,​ the​ deductible applies separately to​ the​ total losses on​ structure,​ of​ contents and the​ damage occurred to​ external structures like sheds,​ garages,​ retaining walls or​ driveways .​
Some insurance providers put forward stringent requirements before issuing a​ policy – they insist on​ an​ inspection of​ one’s property before signing the​ deal .​
For example,​ many insurance companies require that one’s home is​ securely bolted to​ the​ basement .​
The inspection also considers bracing on​ interior walls,​ the​ manner in​ which shelves are fixed and the​ way strapping guards are used to​ hold fixtures .​
But these are no big revamp and won’t be expensive .​
Ideally,​ the​ prospective customers should get their side clear before inviting the​ insurance company inspection team to​ the​ house .​
Once an​ earthquake occurs,​ no more earthquake insurance policies will be issued until the​ declared moratorium expires; that is​ after the​ chance for further damaging aftershocks has lingered .​

After the​ damage has occurred,​ it​ is​ very important to​ make the​ claim,​ supported with all the​ required documents,​ in​ a​ definite period of​ time as​ mandated by the​ company’s terms and conditions .​
Not reporting in​ the​ stipulated time is​ valid grounds for the​ insurance company to​ reject one’s claim for insurance .​
Consumers should consider their requirements and circumstances before applying for earthquake insurance .​
Sometimes,​ it​ can be argued that his/her house is​ situated in​ a​ low risk area .​
But it​ is​ always better to​ be in​ a​ safer side with one’s home .​
After all,​ our homes are our biggest assets.

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