Earthquakes and Earthquake Insurance
A case study you can profit from . . .
When the Puget Sound area of Washington State experienced a significant earthquake in early 2001, many property owners learned the hard way that their standard insurance policies did not cover the losses they had suffered. The phone lines lit up at insurance companies as property holders scrambled to buy new policies or new riders for old policies that had fallen short on providing adequate coverage. In many cases, the property holders were turned away, at least for a time. That is not uncommon in the aftermath of a quake. Insurance companies can stop issuing policies while their analysts and underwriters look at what the company has been required to pay its current policyholders. Often, prices increase.
What you can learn from this case study . . .
Don’t wait for an unpleasant surprise. Learn all you can now about earthquake insurance to assess your current coverage.
California, Oregon, and Washington are especially prone to earthquakes. These states are also more prone to mudslides and forest fires than other states, so buying property in them should prompt any real estate buyer to carefully investigate appropriate insurance protection.
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