Earthquake insurance is quite common in some parts of the country and just about non-existent in other areas.  As an example, someone living near the San Andreas fault line in California is likely to have earthquake insurance while those living in upstate New York feel no need to pay a premium for this insurance.  Though earthquakes have the potential to strike anywhere, they are primarily a phenomenon specific to certain regions of the globe.  Yet there is always the risk a quake will strike so homeowners are challenged with determining whether earthquake insurance is worth the money.  Let’s take a quick look at the pros and cons of earthquake insurance.



Pro: Peace of Mind for Those in Earthquake-prone Locations

If you live anywhere near an area at risk for significant earthquakes, getting insurance for this natural disaster will help you rest easy.  This way, if an earthquake occurs, you won’t end up homeless.  Your earthquake insurance will kick in, cover some or all of your losses and ensure you have a place to live.  You will be cool, calm and confident even if a quake strikes, knowing your insurance policy will help you bounce back to your normal life as quickly as possible.



Con: Earthquake Insurance has the Potential to be Costly

Those living in areas with a high risk for earthquakes will find insurance for this natural disaster is quite expensive.  Shop around for the best rate and coverage, plan out your budget far in advance and crunch the numbers to determine if earthquake insurance is worth the money.  


Earthquake insurance is not expensive for everyone.  Those living in regions with a low risk for earthquakes will find this form of insurance is affordable.  Some earthquake insurance policies can be had for a mere $20/month.



Pro: Earthquake Insurance Covers the Cost of Home Repairs

Imagine a scenario in which a major earthquake strikes your region.  Your property endures extensive damage.  The garage, living room, deck and other portions of the house that may require home repairs.  If you have earthquake insurance, it will kick in after an earthquake to cover the cost of related repairs as well as home reconstruction.  The savings could total in the tens of thousands of dollars or even more.  This way, you won’t lose everything and have to start from scratch after a quake strikes.



Con: Earthquake Insurance Deductibles are Typically High 

Take a look at the “birdseed” of the proposed earthquake insurance policy before signing on the dotted line.  Take a close look at the deductible.  Even if you have a comprehensive policy, there is a good chance the deductible will be somewhat high.  The deductible is usually a specific percentage of the home’s value.  Thankfully, the chances of filing a claim are fairly low so those concerned about protecting their home should not view the deductible as a deal-breaker.



Pro: Earthquake Insurance Ensures You have a Place to Live 

If a significant earthquake hits, your home might be damaged to the point that it is uninhabitable.  Select the right earthquake insurance and it will kick in to cover the cost of living expenses.  The best policies cover the cost of living expenses until the home is repaired to a suitable living condition.  Fail to obtain a policy with such coverage or skip earthquake insurance altogether and you run the risk of having nowhere to live after a quake while still owing monthly mortgage payments.