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East Coast earthquake: Are you covered?

The quake in Virginia -- and another in Colorado -- must have millions wondering whether their homeowners insurance will cover damage. It won't.

By MSN Money Partner Aug 23, 2011 6:09PM

This post comes from partner site Insurance.com.

 

The 5.8 magnitude earthquake that struck the East Coast today, Aug. 23, likely jolted millions of homeowners to ask themselves whether their home insurance would cover quake damages.

 

Such a question is second nature to folks in California, but less likely to come to mind in Virginia -- the epicenter of the recent quake -- or even southern Colorado, which experienced a 5.3 magnitude temblor just hours before the East Coast event.

 

The hard truth is that damages associated with earthquakes are not covered under a standard homeowners insurance policy.

 

As the Insurance.com story "Earthquake insurance can put you on solid ground" points out, "shaking movement of the earth is not covered by a standard homeowners insurance policy, although some subsequent damage may be eligible for coverage." Post continues after video.

If the East Coast and Colorado earthquakes shook your insurance faith, don't worry: You can purchase a separate earthquake insurance policy that will give you peace of mind. Such insurance covers both the structure and the contents of a home.

 

Some insurance companies offer an earthquake endorsement to home insurance policies. Ask your insurance agent if such endorsements are available.

 

Before you sign up for earthquake insurance, make sure you understand what is and isn't covered -- and what your deductible will be. The Insurance.com story on earthquake insurance is a great place to start your research.

 

More on Insurance.com and MSN Money:

4Comments
Aug 24, 2011 11:54AM
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whatever the cause of the destruction of your house should be covered, this is just  another way for insurance company to take your money.
Aug 24, 2011 11:40AM
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And the best part you have to come up with the first $10000 as a deductible.

 

Great deal.

Aug 24, 2011 12:33PM
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We have earthquake insurance in an area that supposedly does not get many earthquakes and pay high premiums we were told because most people here do not have it so the base the insurance company collects from is small.  I am sure those that live in areas where earthquakes are common have to pay high premiums because they are likely to happen.  Either way it is a lose lose for the public.
Aug 24, 2011 10:52AM
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Most companies have a 7 day waiting period after the last aftershock before the coverage can be added to your homeowners policy.
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