Earthquake Insurance

An earthquake insurance policy is a specialized form of homeowner's policy designed to cover damage to property caused by an earthquake, which would be considered an act of God and thus excluded from a traditional homeowner's policy.

Typically an earthquake insurance policy will include a high deductible, which is the monetary amount of damages for which the policy holder is responsible before the benefits of the policy are activated. Essentially then, earthquake policies are most beneficial in the event of the entire home being destroyed.

Rates for earthquake policies are determined by the location of the home, which helps to determine the degree of risk attached to the insured property, and the construction of the home itself. For instance, a home that is built entirely of wood is more likely to withstand an earthquake and is thus a lower risk than a comparable dwelling that is constructed primarily of brick.

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