Earthquake Insurance: Misconceptions and Truths Earthquakes are events that come around every so often. Scientists try as hard as they can to predict them when really their success rates show that they're almost guessing as to when they will arrive. If you're someone who lives in an area where earthquakes are common, you should think about signing up for Carlsbad CA earthquake insurance. Only a small group of people who would need Carlsbad CA earthquake insurance have actually signed up for it. This makes you wonder if their reluctance to accept this coverage stems from a willingness to take chances or acknowledgement of the limited odds they're facing. Misconception #1: Possibility of Paying for Nothing
Since the odds of your home being destroyed as the result of an earthquake are so remote, you run the risk of paying for nothing for an extended period of time when you invest in Carlsbad CA earthquake insurance. The same problem comes when you invest in any other kind of insurance policy. You never know what will happen when you live in an area where earthquakes are more common than anywhere else. That being said, you should avoid looking to deeply at the negative aspect of this situation and focus on the fact that your insurance policy will protect you in the event of a natural disaster. Misconception #2: Home Insurance Will Cover It
Most homeowners have a current home insurance policy in place. They're likely to believe that their policy will cover all the damage that they incur as the result of an earthquake. On the contrary, it's hard to find a home insurance policy that's strong enough to address the damage that an earthquake can cause. You have to have a Carlsbad CA earthquake insurance policy that will pay for the damage as soon as possible, allowing you to recover as soon as possible. It's possible to combine your home and earthquake insurance policies as long as you obtain a rider from your insurance company.
Truth #1: Earthquake Insurance Doesn't Have to Cost a Fortune
Many people who are associated with earthquake insurance will tell you that it can be a costly endeavor when in reality it doesn't have to be that way. Every insurance provider has measures in place that will give you the opportunity to reduce your monthly costs. For instance, if you make an effort to retrofit your home to meet current standards for hurricane safety, your insurance provider might lower your monthly rates. The amount that you will have to spend on retrofitting your home will be paid back to you in the forms of the savings that you will receive each month. Truth #2: Deductibles are Different with Earthquake Insurance Policies
Traditional home insurance policies have deductibles set at a certain dollar amount that you set when you sign up for your policy. A higher deductible will help cut down on your monthly premium, but you can't have a deductible so high that it makes your policy unaffordable. For earthquake policies, the deductible comes in the form of the amount that you decided to insure your home for. It's better to have a deductible that's tiny, however, insurance companies in earthquake prone states are more likely to charge higher deductibles. Photo Credit: Zoriah