Since 1900, earthquakes have caused damage in every state in the country, and have actually occurred in more than two-thirds of them. Because of that, earthquakes are one type of peril that should receive serious consideration from all homeowners. Even though earthquake insurance is expensive, it is much less costly to carry the coverage for many years without needing it than to have to rebuild your home out of pocket a single time because you didn’t have insurance.
Earthquakes, sometimes termed “movements of the earth” by insurance companies, are not generally included in a standard home insurance policy, and in some regions the coverage may be difficult to get through traditional insurance venues. The good news is that you can still purchase earthquake coverage, even if the only source for such coverage is through a state-monitored insurance pool.
Earthquakes can cause other types of damages as well. Tsunamis are common in the aftermath of a quake, even one which happens far out to sea, and the damage from surging waters is considered flood damage by insurance companies. Flood damage is another peril that is not covered under a standard homeowners policy, but can happen in every state in the country and requires a separate flood insurance policy.
Special coverage such as earthquake and flood insurance may not be available through traditional insurance markets. Instead, you may have to purchase the policies through high risk insurance companies or even state maintained insurance pools such as the FAIR plan. The good news is that no matter where you live or what the danger of an earthquake may be, coverage is available. Buying it through high risk pools can be expensive if you live near a fault or in low-lying, sandy areas surrounding one, but the cost is negligible compared to the devastation of losing everything your family owns in a few short moments of unstable ground.