Do you need earthquake insurance?

• Research your locale's potential for an earthquake. Do you live near the New Madrid Fault Line in southern Illinois, the Wabash Valley Seismic Zone in southeastern Illinois, the Sandwich Fault Line in northern Illinois, or the Plum River Fault Line in northwestern Illinois? These are high-risk areas. Decide if you can pay out-of-pocket to rebuild or repair structural damage, replace personal belongings, and temporarily reolocate after a major earthquake. If not, ask a local homeoweners insurance agent about earthquake insurance to offset this financial burden.

Earthquake insurance coverage.

• Earthquake insurance pays for earthquake-related repairs to your dwelling. It may also cover detached structures, personal property, upgrades to meet current building codes, debris removal costs, and more. It is considered catastrophic coverage, meaning the poilcyholder shoulders more of the loss. Rather than a specific dollar amount, the earthquake deductible is expressed as a percentage. Five, ten, and twenty percent earthquake deductibles are common.

Earthquake insurance pricing.

• A variety of factors affect earthquake insurance pricing. Among these are proximity to the fault line, year of construction, building materials, type of foundation, number of stories, coverage limit, and deductible. Review specific earthquake coverages to confirm whether insurance applies to outbuildings, personal belongings, and additional living expenses related to temporary relocation. Look for limitations on landscape features, fences, brick veneer, and more. There are certain types of damage that earthqyake insurance does not cover. These exclusions include fire damage, land damage (i.e. sinkholes, land erosion), pre-existing damage, masonry veneer, vehicles, and more.