Earthquake insurance is best understood as several coverage parts working together. Here is what each one does and what to check.
Dwelling
This covers direct earthquake shaking damage to the house itself, up to the dwelling limit and subject to the deductible. The limit should reflect what it would cost to rebuild, not the home’s market value. The deductible basis matters as much as the limit, which is why we cover it separately in earthquake deductibles explained.
Other structures
Detached structures such as a garage, shop, or fence may be included, optional, sublimited, or excluded. Do not assume a detached structure is covered the same way as the house. Check the form.
Personal property
Contents damaged by a covered earthquake may be covered, but this part is often where policies differ most. Personal property can carry its own limit and its own deductible, and some policies make it optional. If your belongings matter to the decision, confirm the limit and the deductible that applies to them.
Loss of use and additional living expenses
If a covered earthquake makes your home unlivable, this part may pay for temporary housing and related costs. Oregon’s Division of Financial Regulation points out that additional living expense coverage is available only if you carry earthquake coverage in the first place. Check the limit, any waiting period, and how long it lasts.
Debris removal and code upgrades
Some policies include debris removal after a covered loss, sometimes within a sublimit. Building code upgrade costs, often called ordinance or law coverage, may be included, optional, or excluded. Older homes are where this matters most, because a rebuild may have to meet current code.
Reading it as a whole
A good earthquake policy is not just a big dwelling number. It is the right mix of dwelling, contents, loss of use, and other structures, with a deductible you could actually absorb. When you compare quotes, line these parts up side by side before you look at the premium. The questions to ask before buying earthquake coverage walk through exactly that, and our printable review checklist gives you a worksheet.
Just as important is knowing the edges. Continue to what earthquake insurance does not cover.
Questions to ask your advisor
- Does this quote include other structures, contents, and loss of use, and at what limits?
- Does the contents coverage carry its own limit or deductible?
- How does the policy treat building code upgrades on an older home?
- What is the deductible basis, and could I absorb it in a real loss?
- When I compare two quotes, which parts differ beyond the dwelling number?
Want guidance first? Compare your coverage. Already know what you need? Get a quote.
Continue the series
You are reading part 2 of Earthquake Insurance in Oregon and Washington: What Homeowners Should Know.
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