There was a 4.5 magnitude earthquake near San Antonio on Wednesday evening. It occurred in Falls City at 9:26 p.m., shocking Texans since the state is not known for earthquakes.
Seismic activity has recently increased, particularly in regions like West Texas. Standard homeowners insurance policies don't cover earthquake damage, making it essential for homeowners to explore earthquake insurance options. Here's how you can purchase earthquake insurance in Texas.
Understand What Earthquake Insurance Covers
Earthquake insurance provides financial protection against damage caused by seismic activity. Policies typically cover:
- Structural damage to your home
- Damage to personal belongings
- Additional living expenses if you need temporary housing while repairs are made
- However, earthquake insurance does not usually cover damage caused by landslides, floods, or sinkholes resulting from an earthquake.
Check With Your Current Home Insurance Provider
Most major insurance companies offer earthquake coverage as an add-on to an existing renter's or home insurance policy. Contact your insurer to see if they provide this option and review the policy terms, including coverage limits, exclusions, and deductibles.
Compare Standalone Earthquake Insurance Policies
If your current insurer does not offer earthquake coverage, you can purchase a standalone policy from a specialized insurance provider. Companies such as GeoVera, ICAT, and the Texas FAIR Plan Association offer earthquake insurance. These policies often provide broader coverage than add-ons.
Evaluate Policy Costs and Deductibles
The cost of earthquake insurance is based on various factors, such as:
- Your home's location and proximity to fault lines
- The age and construction type of your home
- Coverage limits and deductible amounts
- Earthquake insurance typically has higher deductibles (ranging from 2% to 20% of the home's insured value) compared to standard homeowners insurance.
Purchase and Review the Policy Carefully
Before finalizing your earthquake insurance purchase, read the policy terms thoroughly to ensure you understand what is and isn't covered. Make sure to ask about waiting periods, claim procedures, and any specific exclusions.
Conclusion
While earthquakes may not be a top concern for all Texas homeowners, purchasing earthquake insurance can provide valuable financial security in case of unexpected seismic events. By researching options, comparing policies, and selecting the right coverage, you can ensure your home and belongings are safeguarded against earthquake-related damage.