How does earthquake insurance work?

Earthquake insurance operates differently compared to other insurance policies. Here’s how it typically works:

  • Deductible: The deductible for earthquake policies is based on a percentage of the coverage amount for the structure (Coverage A) or personal property (Coverage C), whichever is greater. Check your homeowner policy for the specific deductible details.
  • Coverage Threshold: Earthquake insurance only pays for damages that exceed the deductible. Any damages below the deductible amount are typically not covered.
  • Separate Deductibles: Depending on your policy, there may be separate deductibles for different components such as contents, structure, and unattached structures like garages, sheds, driveways, or retaining walls.

It’s essential to review your policy and consult your independent agent for a comprehensive understanding of how earthquake insurance works and the specific deductible amounts for different aspects of coverage. They can provide the necessary information and answer any questions you may have.

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