With the recent quakes in California, earthquake insurance may be at the forefront at many folks’ minds. We’ve put together a quick primer on what this coverage is and what it does, and doesn’t, cover.
Earthquakes can cause great harm to home structures. They can damage housing foundations and collapse walls; even relatively mild tremors can destroy furnishings and belongings.
Homeowners and renters insurance do not cover earthquake damage; a standard policy will, however, generally cover losses from fire following a quake and, if such a fire makes your home unlivable, cover the additional living expenses incurred while you live elsewhere during repairs.
Cars and other vehicles are covered for earthquake damage under the optional comprehensive part of an auto insurance policy.
Earthquake coverage is available in the form of a separate policy or an endorsement from most private insurers and, in California, from the California Earthquake Authority (CEA).
To see if you’re covered or not for these types of damages listed above, talk to your agent or broker and be sure to read your policy.