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Guide to Earthquake Insurance for Real Estate Investors | World Insurance

Written by Isaac Lebovits | Dec 20, 2024

A Simple Guide to Earthquake Insurance for property owners

If you own properties or manage them, it’s smart to think about protecting them against earthquakes. You might not know this, but you can usually add earthquake coverage to the insurance you already have for your properties. This short guide will help you see why getting earthquake insurance is a good idea, even if earthquakes don't happen often where your properties are.

What's Earthquake Insurance?

Earthquake insurance helps pay for damage to your property if there's an earthquake. Most of the time, the regular insurance you have won't cover earthquake damage. But the good news is you can add it to your existing policy pretty easily.

Why it's smart to have it everywhere

You might think you only need earthquake insurance in places like California, where earthquakes are more common. But the truth is, earthquakes can happen in places where you least expect them. And if you're in an area that doesn’t usually have earthquakes, the insurance can be really cheap. It’s a small cost for a lot of peace of mind.

why all property owners should think about it

  1. Fills in the Gaps: Adding earthquake insurance means you're covered for something your regular policy doesn't include.

  2. Check Your Risk: Even if earthquakes are rare where your properties are, it’s good to know what could happen. Sometimes, a little bit of research can show you if there’s even a small chance of earthquakes.

  3. It’s Affordable: In places where earthquakes aren’t common, earthquake insurance doesn't cost much. It's worth it for the protection it offers.

  4. Keeps Your Investment Safe: Properties cost a lot of money. Earthquake insurance is one way to protect your money if an earthquake damages your properties. Sometimes, it can even help cover the money you lose if you can't use your properties after an earthquake.

deciding to get it

Think about how much it would cost to fix or rebuild your properties without insurance if an earthquake hit. Then, compare that to the cost of adding earthquake insurance to your policy. For many people, especially in places where it’s cheap, getting earthquake insurance makes a lot of sense.

conclusion

For anyone who owns or manages properties, getting to know your options for earthquake insurance is smart. It’s not just about having insurance; it’s about understanding what risks your properties face and protecting them in a way that makes sense for your budget. In many cases, getting earthquake insurance is an important step in keeping your investment safe.

 

 

This article is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.