What Is Earthquake Insurance?
True, the earth, we live in, is the most beautiful of theplanets in the solar system. But in order to live in thischarming place, we need to put up with its negative sides a well- natural disasters and earthquakes to name a few in thisregard. To a larger extent, we humans are helpless inanticipating an earthquake. Who knows what providence has instore for us. The closest thing one can do is to remain preparedfor the worse mentally and financially. In this article we talkabout earthquake insurance, as a secure means of protectingoneself from the losses that can happen due to a destructiveearthquake. Earthquake insurance covers for financial losses caused due to adevastating earthquake or earth movement such as land slide,mudslide or sinkhole that involves the shifting, sinking orrising of earth surface. But earthquake insurance comes with atwist - it does not pay for losses incurred due to a tidal waveor flood, even the effect is compounded or affected by a priorearthquake. Sometimes ridiculous technicality that is, but acommon man has no other choice than living with it. An important aspect with earthquake insurance is that it is nopart of the homeowner or tenant insurance policies. Instead,earthquake insurance stands independently like a life insuranceor auto insurance. Let us see how earthquake insurance works. Earthquake insurance,unlike most homeowner insurance types - covers mainlysubstantial losses. The claim is paid after accounting for thedeductibles that may vary from 10-25%. The damages that exceedthe deductibles are only paid to the customer. Even though there are no hard and fast rules in deducing claims,while doing so, some insurance providers may take in to accountstructure and contents as separate entities. In such analysis,deductibles apply separately to total losses incurred on thestructure, contents and damages to external constructions likegarages, sheds and driveways. Certain insurance companies put forward strict requirementsbefore issuing one an earthquake insurance policy. That is, theymight insist on undertaking a detailed inspection of theclient's property before moving further ahead with the policy.For example, some insurance providers insist that the client'shome should be securely bolted to the basement. The inspectionalso covers other aspects like the bracing on the interior wallsand how strapping guards are used to support fixtures. Hence, itwould be better if the homeowner clears his side and plug allloop holes before inviting the insurance company to inspecthis/her house. Now the most important thing; once the damage occurs due to anearthquake, make the claim promptly and within the time periodas stipulated by the rules and regulations governing the policy.Also, make sure that your claims are supported with all validdocuments and proof of damage incurred. One might wonder, but itis these two points in which many people error and subsequentlyhave their claims rejected by the insurance companies. Let us conclude with the biggest and funniest of the points tomake - what is the point in applying for earthquake insurance ifyour home lies on a non-earthquake prone zone? Won't it be awaste of money??Well, it is more of a personal choice to make. If your home issituated on a fault area, better go for insurance. Else, one canplay with your chance, depending upon the confidence you have onyour destiny. Either way, we wish you good luck!
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