Regardless of where people live, at any random moment they can be exposed to a catastrophic loss. For an example, flooding is not only restricted to coastal locations, they can happen anywhere at any time. The same can be said concerning earthquakes. Even though homeowners living in well-known earthquake areas in the U.S. such as California and Alaska are more exposed to the chances of earthquakes, other areas can be exposed unexpectedly as well.
There are several large areas of the United States, including a significant part of the Midwest that are vulnerable to the danger of earthquake catastrophes. This part of the U.S. is called the “New Madrid Seismic Zone.” In the last decade, regular earthquake activity has been measured in this zone. Also, in New York state, as well as Long Island, there have been several unexpected earthquakes felt. Therefore, they can happen anywhere, at anytime, as the earth’s tectonic plates are ALWAYS shifting.
Only about a fraction of property owners that experience such catastrophic events carry the proper level of insurance. Basic homeowner insurance policies do NOT include protection against earthquakes. Specific earthquake insurance must be purchased. Earthquake coverage is quite affordable. Generally, coverage is available for a couple hundred dollars per year to provide protection for a humble-sized home. Earthquake prone areas face losses that are low probability, so the potential loss severity is so high that purchasing this separate insurance makes perfect sense.
Example: The Peterson’s love their home in California. While living there, they have experienced a number of minor earthquakes. The problem is that throughout this time they have not had earthquake coverage. One day a quake occurs and severely damages their home. The quake breaks a gas pipe and a fire erupts. The fire damage is covered but the quake damage is not.
Shake up your insurance protection today and avoid being totally shaken down by a disastrous quake.
If you have any questions about your existing policy, are inquiring information about a possible future policy or need further information, please call us at (631) 738-7300 or get a quick quote at www.vrpinsurance.com
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