Renters insurance is an important policy for tenants that offers protection for their personal properties or belongings in case of natural disasters, fire, or theft. However, have you been searching the internet for “Does renters insurance cover earthquakes?” Well, this is the right article for you.
Generally speaking, the straight answer to this question is no. Standard renters insurance covers many events and items. However, earthquake damage is usually not included. You may need additional coverage to protect against earthquake-related losses. The only way this damage can be covered is to purchase additional earthquake insurance coverage and add it to the renter’s policy. Read to the end as we delve into more information on earthquake insurance for renters to make you understand your policy aspect.
When Does Renters Insurance Cover Earthquakes?
Just as I have mentioned above, your standard renter policy does cover different items and events, but it won’t cover earthquakes. However, if you want to cover earthquakes, you will have to buy earthquake insurance as an additional coverage to your standard Renters policy. In case of a covered disaster, the add-on will pay up to the policy-selected limits.
The earthquake insurance you added to your policy will help provide you with an apartment after an earthquake disaster. Generally, the coverage will cover the cost of the earthquake damage to your rental home. Always keep in mind that the coverage limits depend on the insurer. It is, however, advisable to speak with your insurer about the coverage limits.
What Earthquake Insurance for Renters Doesn’t Cover?
Just like every other policy, the earthquake insurance for renters doesn’t cover every earthquake event and damage. The coverage has its exclusions. Below are some of the situations where the earthquake add-on to your standard Renters policy won’t cover earthquakes:
- It won’t cover fire damage, even if it was caused by an earthquake.
- The policy won’t cover the damage to your land or sinkholes caused by erosion and other openings. If you would like to protect your land, you will have to buy separate coverage.
- The add-on won’t cover damage to your vehicle, even if an earthquake is to blame. You will have to check your auto insurance policy to know what coverage covers the type of damage.
Additionally, if your home is flooded after an earthquake, you need to know that your earthquake insurance for renters won’t cover the damages. Typically, you will have to purchase separate flood insurance for it. This can also be added to your renter’s insurance. Speak with your insurance company or agent about what your policy covers and what it doesn’t.
Do I need Earthquake Insurance?
Your renter’s insurance policy that contains earthquake coverage can be very useful since you don’t know when the disaster can happen. In addition to the repair costs, renting a new apartment can be very costly. If you live in an area where this disaster is very common, you should purchase it. It will keep your mind at rest, even if it occurs.
How can I Purchase Earthquake Insurance?
Just so you know, you can typically purchase this earthquake coverage as an add-on to your policy or as a stand-alone policy. If you stay in a location where the disaster is not that common, you can just add it to your renter’s policy. However, if you stay in a high-risk location, you will have to purchase it as a separate policy.
If you just want to purchase the insurance, you can get it from major insurers such as Nationwide and State Farm. Small companies like Lemonade, Toggle, and more also offer this policy. Make sure you find out very well how the insurer sells their earthquake insurance to renters before purchasing. To ensure that you are going for the right deal, you should get quotes from more than one company.
How much Earthquake Insurance do Renters Need?
Ensure that you purchase adequate coverage to replace your personal belongings in case they get damaged in an earthquake. The best method to know the insurance you need is to create an inventory of your belongings. You can use an online property calculator to determine the amount of insurance you need depending on your assets.