What You Need to Know About Earthquake Insurance in Connecticut

Certain areas of Connecticut require flood insurance, but what about for earthquakes?
In general, no homeowner is legally obligated to buy earthquake insurance, although some lenders may require it when you purchase property. As is the case with other natural disasters, standard homeowner policies do not cover earthquake-related damage. As a result, the homeowner must purchase a separate policy or get an endorsement for their current one.

Location

Roughly 90 percent of the United States may experience an earthquake, although the risk is far greater in certain regions. Connecticut leans toward the low to moderate end. While earthquakes have occurred here, it is rare and tends to result in minimal damage. Moodus, out of all towns, has experienced the greatest number of earthquakes over the years.

Premiums

Unlike other forms of coverage, earthquake insurance is based on a percentage. Your monthly deductible, as such, composes 5 to 25 percent of the cost to rebuild your home and replace your belongings.
As a baseline, you and an agent must determine the amount to rebuild your current property, and what you’ll be able to pay out of pocket. As with homeowners insurance, you’ll have to calculate the replacement cost  of the contents in your home, such as electronics and appliances.

Coverage

Your policy may encompass your home, detached structures, and the contents.  Should an earthquake occur, it will likely cover:

• Repairs or rebuilding
•  cost of removing debris
• Paying for additional living expenses
• Getting your property up to the latest building codes

But the policy won’t cover instances  such as:

• Fires related to the earthquake
• Land damage
• Vehicular damage
• Pre-existing property damage
• External water damage
• Repairing expensive or superficial siding

If you’re concerned about earthquake coverage, get more information from Ion Insurance. Call us at 203.439.2815 to speak with an agent.