The forces of nature can be most unpredictable at the best of times. While the weather events above ground leave a lot of destruction in their wake, this often is rendered insignificant compared to the threats from below. Earthquakes are potently dangerous. People living in the states of Missouri, Illinois, Kentucky, Tennessee and Arkansas join the league of Californians when it comes to Earthquakes and preparedness for them.
Earthquake Coverage and its calculation
Earthquake insurance in Arkansas is not included with the typical standard homeowners insurance policy. This is purchased separately as an add on endorsement. This kind of coverage is regarded widely as a catastrophic coverage. The deductible for this is quite high (normally 10% of the home's value) but this is better than being unprotected.
Understandably the costs of earthquake insurance vary from carrier to carrier, but depend greatly on your location. Earthquake prone areas are identified and categorized by insurance companies on a scale of 1-5. This is used to calculate your risk, which then determines how much premium you will need to pay.
Your house may also be used to determine your premium: So make sure that you have bought the wooden frame-constructed house you had planned on buying. This is definitely more quake-resistant than a brick one and could possibly fetch you some discounts.
Once purchased, the endorsement imbeds itself in your homeowners policy as an added peril. It will cover all losses attributed to the earthquake under normal circumstances (while paying attention to the deductible). However, if the earthquake is accompanied by floods then, you need to have added protection for that since the Earthquake coverage does not include flood damage caused by an earthquake.
Earthquakes and Retrofitting
Your dwelling needs to meet the requirements of the Building Code and Health and Safety Code and if it does not, even then, the Insurance companies will be required to offer earthquake coverage.
Your dwelling must however have some amount of foundation anchor bolting and water heater bracing. An additional premium and/or an increased earthquake deductible may be charged if this is absent.
Check about the possibilities of getting discounts from your insurance company. The known discounts are offered on retrofitting for earthquake hazard reduction to your property and this may be given in writing by the insurance companies concerned.
Retrofitting enables strengthening of your home and minimizes potential earthquake damage. Many consumers often take simple steps such as bolting your wood frame home to the foundation, which can save you from severe earthquake damage and can reduce your earthquake insurance premium. Residential retrofitting includes, but is not limited to the following:
- Anchoring a dwelling to its foundation through seismic bolting
- Reinforcing and/or bracing the fireplace chimney
- Reinforcing and fitting the water heater to the foundation of the residence
- Installing automatic gas shut-off valves
- Installing bracing for sheer walls
If your dwelling has been wholly retrofitted and if your insurance company has vetted this then you can be offered up to$10,000 coverage for reconstruction costs. This will enable you to make your residence compliant with existent building codes as required after an earthquake. This figure will vary from state to state and from one insurance company to another.
There is nothing like an auspicious time to buy a Homeowners Insurance in Arkansas. The sooner you add the Earthquake Coverage the better your situation is if an earthquake comes visiting.
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