According to the United States Geological Survey (USGS), eighty-one percent of the world’s largest earthquakes have occurred in what is known as the circum-Pacific ”Ring of Fire”, which includes America’s West Coast up through southern Alaska. Not surprisingly, the USGS notes that Alaska and California have more earthquakes than any other states in the country.
There are two common types of earthquake coverage for homeowners:
- Comprehensive policies. Covers the home, the contents of a home, loss of use and building code upgrades. It also covers other structures such as the garage or a backyard shed.
- Standard/mini policies. Protects your home, but usually have more limited coverage for contents, loss of use, other structures and building code upgrades.
Deductibles typically run from 5 to 15 percent of your home’s replacement value. Cost is most affected by your home’s proximity to a known earthquake fault line, but premiums can also be influenced by coverage amount, deductibles, your home’s age and its construction materials.