The most intelligent approach to considering earthquake insurance, as
with other kinds of insurance, is to buy coverage only when the lack
of it will create a financial burden. In short, it is necessary to
decide at what level of loss, repair or rebuilding your home becomes
an unacceptable burden. This is an individual financial question and
must take into consideration the value of your home and probability
of an earthquake in your area.
A generally accepted rule of thumb is that you should not risk more
than 10% of your liquid assets. The damage caused by a minor
earthquake can be borne without insurance coverage, but the potential
damage from a major earthquake would far exceed 10% of most
individuals liquid assets.
Earthquake insurance is very specific coverage and understanding the
details of your policy is very important. For more information on
earthquake insurance visit our specialist site below.