Insurance for earthquake
Renters insurance earthquake, earthquake property insurance, earthquake insurance
No doubt we can call earthquake the biggest naturally occurring calamity.
It can be called the biggest disaster which must be insured. It is quite
obvious that today or tomorrow, earthquake may hit us. There is no way
to get rid of it. Builders claim that they build earthquake-proof buildings
but in fact; these buildings did not resist the calamity in recent times.
In California earthquake 1994, 12% of the total people who own their homes
were able to overcome their loss because they insured themselves. Earthquake
insurance is a form of property insurance that pays the policyholder in
the event of an earthquake that causes damage to the property. Most ordinary
homeowners’
insurance policies do not cover earthquake loss.
There are high chances of earthquake in certain specific areas in the
region. 13 years before, 30% insured their houses in California. But the
rate has been decreased to 12%. The risk is still critical in the region
for earthquake. But a long time has been passed; earthquake has not hit
the region. That’s why people are relaxed and not showing any concern
to insure them.
As the disaster by earthquake may be ones whole property, so the insurance
companies do not offer the entire residential and business coverage. It
offers a different policy.
The disaster by California earthquake was such a huge one that government
set up an authority for collecting funds for the earthquake victims. The
people of California who were not affected by earthquake helped more than
other regions of the world. They collected approximately 1.3 billion dollars.
Each year, more homeowners get rid of earthquake coverage than buy it
because, according to consumer groups, they believe the policies cost
too much and cover too little.
Contents of the insurance
The policy of business owner is followed in the insurance
of the earthquake. The package offers to cover the disaster
by earthquake, cracks in the buildings and other damages to the property.
It is very wise to purchase the earthquake
insurance package and insure yourself. It can be bought by
the insurer.
Purchasing the policy separately
One can buy the package of insurance separately. This offer is beneficial
for huge businesses so that they can gain something on business insurance.
It is not simple and beneficial for small businesses. For example, when
gas explodes, the loss is not covered by the insurance for earthquake.
Cost of the insurance
The insurance costs one thousand American dollars. The cost of the premium
is different in different regions. The premium checks out how old the
affected building was, the material used in building, The Information
Institutes run 30-60% per1000 dollars in East, 3-15% per 1000 dollars
in West.
Most earthquake insurance policies feature a high deductible,
which makes this type of insurance useful if the entire home is destroyed,
but not useful if the home is merely damaged. Rates depend on location
and the probability of an earthquake. Rates may be cheaper for homes made
of wood, which withstand earthquakes better than homes made of brick.
The deduction is 10 to 15%. For example, if earthquake damage loss is
1 dollar, then business is responsible for 100 to 150 dollars.
Some other policies covering the earthquake damage
Here are some other policies:
• Commercial auto: it offers coverage of damages like buildings, fire
etc.
• Compensation to the workers: there is another insurance that offers
aid to the workers who are injured in earthquake.
• Business interruption: it protects a business owner against losses resulting
from a temporary shutdown because of fire. Generally, business interruption
insurance provides reimbursement for lost net profits and necessary continuing
expenses.
If your business is in any area that lies in susceptibility of earthquake,
you must insure for your betterment.
