Regular homeowners insurance policies cover a lot of natural disasters. However, earthquakes are usually excluded from the coverage. This is because severe earthquake does not usually happen and the likelihood of a severe earthquake depends on where you are located. California and Washington are more likely to experience earthquakes than other areas.
A major difference between standard homeowners insurance and earthquake coverage is the deductible amount. For standard homeowners, you often have an option to set the deductible amount to an affordable one in case you need to file a claim. On the other hand, earthquake policy deductibles are based on a percentage of the policy limitation. For instance, on a policy worth $500,000, you may set the deductible to 15% of the the limit of the policy. This means that you are responsible for paying the monetary value of that 15% which is $75,000. Location heavily dictates the rates.
A certain monetary value of the structure limits is covered in the event that you lose your home and all possessions. It is usually around 50-70%. Earthquake coverage, on the other hand, will only cover a small amount at around $4,000 to $5,000. This is due to the likelihood of loss being slim. Fragile things like televisions and other items that are breakables are more likely to be destroyed.
In case of an incident, it is in your best interest to have coverage for your home and family. Do not let yourself to be shaken up by an earthquake.