Earthquakes can cause much harm to home structures. They can damage housing foundations and collapse walls; even relatively mild tremors can destroy furnishings and belongings.

Homeowners and renters insurance does not cover earthquake damage. A standard policy will, however, generally cover losses from fire following a quake and, if such a fire makes your home unlivable, cover the additional living expenses incurred while you live elsewhere during repairs.

Earthquake insurance recommendations

Determining if you need earthquake insurance is more important than ever—even if you do not live near a fault line. If you are thinking about buying a home in an earthquake prone location, it’s advisable to look into the cost of insurance coverage to understand the home’s true cost.

Some questions to determine whether you need earthquake insurance:

• Can you afford the cost of rebuilding or repairing your home if it damaged?
• Can you replace your personal belongings if they are damaged or destroyed?
• Can you afford to pay for temporary housing and other expenses if structural damage makes your home uninhabitable?

Rates for earthquake insurance can vary significantly, from fairly inexpensive in lower risk areas to a relatively high cost in places that are more prone to earthquakes.