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Things to Consider Before Purchasing Earthquake Insurance

Cracked Old Concrete Structure

Are you a resident of the United States or living in the United States and have a business and personal property that earthquakes could damage? Do you live in earthquake-prone areas in the United States? If your answer is yes, Thumann Insurance Agency is here to protect you against any losses resulting from an earthquake. Working in conjunction with California Earthquake Authority (CEA), the insurance company covers your house structure, emergency repairs, building code changes/upgrades, and any other damage to your home due to an earthquake. According to the CEA, earthquake damage may also entail things such as vehicles. Our experts at Thumann Insurance will advise on the earthquake insurance policies that would fit your family and home.

Insurance Coverage for Earthquakes

While they are least expected in many parts of the world, many countries worldwide are facing the dangers of earthquakes at the least expected times. They have led to the loss of lives and personal property for many. You surely do not want to be a victim, especially if you have investments in business and property such as real estate. Losses resulting from such natural calamities cannot be prevented, but you can be cushioned against the risks. Luckily, at Thumann Insurance, we offer earthquake insurance to protect your home and yourself against the losses associated with the incident.

What is Earthquake Insurance?

Severe earthquakes can lead to massive monetary losses. Earthquake insurance, also known as earthquake policy, refers to an insurance policy that protects you and your personal property against damages resulting from the events and effects of the quake. An earthquake is a peril usually excluded from the other homeowner's insurance policies. An earthquake insurance policy generally requires distinct Coverage as an add-on to your regular Coverage, and it is subject to higher deductibles than Coverage for other risks.

Can you Buy Earthquake Insurance?

Earthquake insurance coverages are usually bought as different covers. It, however, attracts higher deductibles.

How do I choose Earthquake Insurance?

Before buying earthquake insurance, you need to consider various factors. Proximity to active earthquake faults is a factor determining the level of risk you are exposed to. Places near spots with frequent earthquakes expose you to higher risk. The architectural layout, materials used, and quality of workmanship, among others, are critical factors for your building. Do your due diligence and get all the necessary insurance information for decision-making.

Earthquakes and Coverage

Earthquakes can damage anything on land and underground, whether living or nonliving. Therefore, the Thumann Agency advises clients to go for an earthquake coverage policy. Standard homeowner's or renters' insurance policies do not cover damage caused by quakes. The homeowner's or renters' insurance covers are bought separately to spread the risks. Standard procedure, however, generally covers losses from fire following an earthquake. In some cases, you could be lucky to have living expenses covered. However, it would help if you did not take chances on damages caused by the earthquake and should have covered the losses.

In California, earthquake insurance covers are available as separate covers by private insurers, authorized by the California Earthquake Authority CEA. CEA offers education, mitigation, and insurance against earthquakes. CEA has insured over one million households and writes two-thirds of all residential earthquake policies sold in California. It gives two-thirds of homeowners insurance policies through insurance companies. It also liaises with credible insurance companies such as Thumann Agency to Provide Coverage to needy clients.

Due to the high risk of earthquake damage from earthquakes in California, CEA offers Coverage for the house's structure and emergency repairs. It also provides different coverage options for personal belongings, with a separate, lower deductible, and for additional living expenses without any deductible. Only about 10% of residents of California insure against earthquakes.

You can buy Earthquake Insurance as an add-on to your Homeowners or Renters Policy

Before purchasing an earthquake insurance policy, consider a few factors for the right decision. It is worth noting that standard home insurance doesn't pay for any damage caused by risk and quakes. Earthquake insurance cover can be granted as an add-on to your homeowner's policy, extra cost, or a separate policy. Thumann Agency, however, fills this gap as your Earthquake coverage provider. In some cases, the company will tell you to find another policy or link you to CEA.

How often Should you Insure against Earthquakes?

While not frequent nor predictable, earthquakes may occur several times in a year - so make sure you purchase Coverage that will cover more than one event. Even though you need earthquake insurance cover, it is not mandatory. Although quakes can happen anywhere, some places are more prone to them than others. In such cases, it would be critical to purchase earthquake insurance. A single event can be devastating, and you may not afford to rebuild your home from your pocket, let alone recover your belongings. Insurance thus covers your high risk of loss from quakes. Many people may consider the premium payments unnecessary, but they will see their importance when filing a claim.

Where to Buy Earthquake Insurance

Your personal belongings, such as furniture and clothing, and additional living expenses. An earthquake insurance policy will pay claims for repairs and damage to your home, house, and attached structures, such as a garage. It does not cover any fire caused by an earthquake, which is covered under your homeowner's insurance. It also excludes vehicle damage, which is covered by comprehensive auto insurance. Floods are also covered under flood insurance. Even in cases where flood is a byproduct of the earthquake, you will require flood insurance to cover that. Other optional coverages include building code and building code upgrades, land restoration, etc.

How much Coverage do you Need?

Different factors determine the cost of the insurance policy and your coverage limit. For homeowners, dwelling coverage limits apply for both earthquake and home insurance. For renter insurance, dwelling coverage does not apply. As opposed to home insurance, these coverages have a steep deductible. The average deductible will lie between 10% and 20% of the dwelling coverage limit. Also, one deductible applies to most of the structures and possessions.

Other factors yet determine earthquake insurance rates. These include the ZIP code, the age of your home, the number of stories in your house, the rebuilding cost of your home, and the soil type on your property, among other factors. Your proximity to fault lines as the fault lines directly increase the risk for earthquakes.

Consult the Professionals at Thumann Insurance Agency for your Earthquake Insurance in Dallas, TX

For over two decades, Thumann Agency has dedicated resources to ensure excellence in the insurance service provider. Personal touch with our clients has been part of our reputation. We handle every client's needs as if they are the only ones, enabling our team of experts to give you specialized attention and remarkable experience. One thing remains unchanged even in the event of a quake, and it is this; Thumann Insurance is the go-to insurance agent. Call us on 972.991.9100 to schedule a consultation.