Why Homeowners Need Flood and Earthquake Policies

earthquake warning sign, flood and earthquake insurance for your home

Why Homeowners Need Flood and Earthquake Policies

Secure the supplemental home coverage you need.

While your homeowners insurance in Orange, California will protect against most perils, all insurance policies have limitations.  In the case of standard home insurance policies, they exclude coverage for flood and earthquake damages because they are so costly to repair.  This is where specialty flood and earthquake coverages come in.  But what do you need to know about these policy options?  Read on to learn more.

What is Flood Insurance?

Most flood insurance policies are administered by the Federal Emergency Management Agency (FEMA).  Insurance providers work with FEMA to offer homeowners access to this coverage in flood-prone areas.  Flood insurance offers coverage for the physical damages and losses caused by floods and flood-related erosion.  This coverage extends to floods caused by heavy rain, dam breaks, clogged storm drains, unusual tide surges, and so on.

How Much Does Flood Insurance Cost?

The cost of your flood coverage is dependent on several factors.  When determining your coverage rates, insurers will look at the following:

  • The amount of coverage you have purchased
  • The deductibles you set
  • The location of your home
  • The age, occupancy, and structure of your home
  • The elevation of your home’s lowest floor relative to the elevation of the 1% annual chance flood

What is Earthquake Insurance?

Earthquake insurance offers coverage for the damages caused by an earthquake.  This coverage extends to the structure of your home, as well as the personal belongings that may be damaged or lost in a quake. Please note that earthquake insurance only offers coverage for your home and personal belongings.  For instance, if your car was damaged during an earthquake, then your earthquake insurance would not offer coverage to repair this damage.  Instead, this would fall under the jurisdiction of your comprehensive auto insurance.  Typically, earthquake insurance is only necessary for homeowners who reside near a fault line or in an area with seismic activity caused by drilling.

How Much Does Earthquake Insurance Cost?

Earthquake insurance rates vary widely depending on where your home is located.  Homes in low-risk areas will usually have lower insurance costs.  However, if your home is located near a fault line, then your premiums will be significantly higher.  Your rates may also be higher if the following is true:

  • Your home is older
  • Your home is made of brick (brick is less flexible and therefore has a harder time withstanding the stress caused by an earthquake)
  • You live in a high-value home

This is what you need to know about flood and earthquake insurance.  Do you have additional questions about your home coverage?  If so, then contact the experts at Remland Insurance.  We are ready to assist you with your homeowners insurance in Orange, California, today.