What Is Earthquake Insurace?

Earthquake insurance is a type of property insurance that helps protect homeowners and businesses from the financial damages caused by an earthquake. It typically covers the cost of repairing or rebuilding a damaged home or business, as well as the cost of temporary housing if the property is uninhabitable. Earthquake insurance may also cover other expenses such as the cost of debris removal and the cost of replacing personal belongings that were damaged or lost in the earthquake.

It's important to note that earthquake insurance does not cover damages caused by flooding, landslides, or other natural disasters that may occur as a result of an earthquake. Additionally, earthquake insurance policies may have high deductibles, meaning that the policyholder is responsible for paying a significant portion of the damages out of pocket before the insurance kicks in. This is why it is important to look at a policy with an agent, so you understand what your out of pocket costs could be, and if its an amount you’re comfortable with.

What about my homeowner’s insurance?

Homeowners insurance policies typically do not cover damage caused by earthquakes. However, you can purchase earthquake insurance as a separate policy or, depending on the company, as an endorsement to your homeowners insurance. Working with a local agent, you can see what types of coverage are available and better understand what is and is not covered under your policy.

Do I Need Earthquake Insurance?

Deciding whether or not you need earthquake insurance can depend on several factors, including where you live and the likelihood of an earthquake occurring in your area. If you live in an area with a high risk of earthquakes, you may want to consider purchasing earthquake insurance. The cost of repairing or rebuilding your home and replacing your belongings can be substantial if an earthquake occurs, and without earthquake insurance, you would be responsible for paying those costs out of pocket.

The Charleston Area, including Summerville, North Charleston, West Ashley, Mt. Pleasant, and all the surrounding areas, is situated on the Middleton Place - Summerville Seismic Zone, which is the most seismically active fault in the Eastern United States, and produces 10-20 earthquakes per year, with around three to five being strong enough to be felt.

On August 31, 1886, Charleston, South Carolina experienced the most powerful and damaging earthquake to hit the East Coast of the United States in recorded history. The earthquake had a magnitude of 7.3 on the Richter scale and was felt as far away as Bermuda, the Mississippi River, New York, and Cuba. It caused significant damage to the city of Charleston and the surrounding area, including the collapse of several buildings and the destruction of many homes and businesses. The earthquake caused at least 60 deaths and millions of dollars (in 1886 money) in damage.

Experts agree that anywhere earthquakes have occurred in the past, they can occur in the future, and unlike other natural disasters like floods and hurricanes, there is no way to predict when they happen.

How Much Does Earthquake Insurance Cost?

Like any insurance policy, no one can tell you exactly what it will cost without knowing the details of your property, and preparing a quote, however, some of the factors that are important are the property’s location, its age, and the type of construction.

Additionally, the deductible has a big influence on the price. The higher the deductible, the more of the risk you are retaining for yourself, and therefore, the lower the premium charged by the insurance company.

Talking to an agent is the only way to find out what coverage would cost, and you can do that quickly and easily with one of our licensed agents today!