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The Pros and Cons of Earthquake Insurance

Is Earthquake Insurance Worth It?

When you buy homeowners insurance, it would be nice if it covered absolutely everything that could happen to your home, but in reality, it just doesn’t. You might want to get additional insurance to cover certain things that could occur, like earthquakes. Earthquakes can happen just about anywhere, but if you live in an earthquake-prone region, like somewhere right on a fault line, it’s a lot more likely to happen to you and damage your home than elsewhere. There are several reasons people avoid this type of insurance, but there are many benefits to having it. Here are a few reasons why many homeowners don’t bother with it:

Reason 1: They Believe It’s Already Covered

Many homeowners don’t take the time to read over their homeowners policy and they think that earthquakes are covered. It would make sense, especially in an area prone to earthquakes, but it simply isn’t the case. It’s best to read the fine print on all insurance coverage so you aren’t caught off guard later.

Reason 2: The Cost

Homeowners insurance is already an expense and many homeowners who know about earthquake insurance, still decide not to get it because it is an additional cost that piles onto their already high expenses. Even standard earthquake insurance rates can feel unaffordable if expenses are already high. 

Reason 3: The Government Will Help

Some people don’t bother with extra insurance because they think the government will help them rebuild if a natural disaster occurs. While there might be some government finances available, it’s not smart to rely on that help alone in the event of a disaster. It could be slow going or completely non-existent.

Pros of Earthquake Insurance

Instead of trying to come up with more reasons not to get this additional insurance, take a look at the benefits of having it. First, you get peace of mind that if anything ever happens, you can rebuild, take care of your family, and not suck away your entire life savings in the meantime. Second, paying for insurance on a regular basis is a small cost when compared to building your house and replacing everything in it. If an earthquake were to occur, you’d be much better off.

Do You Want to Get Earthquake Insurance?

In a way, having insurance or not having insurance is a gamble. You don’t know what you will or won’t need. You may never use your earthquake insurance, but if you need it and don’t have it, you’ll certainly wish you had it. Likewise, you may never use your car or house insurance, but those are things you must have either way. If you are interested in at least looking into the options, contact the professionals at Nickerson Insurance. We’ll assess your budget and your home’s situation and help you decide what’s best for your family. We won’t push you into any decisions and we’ll only recommend things we would do for our own situation if we were in your shoes.

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