Monday, April 7, 2008

Earthquake Coverage

While we don't live in California, with a constant barrage of information, warnings, and occurences, it is not unknown to the Midwest to have devastating earthquakes occur.

The fault line that we are most concerned with in this region of the US is the New Madrid fault line.  This fault line and Seismic Zone runs between St. Louis and Memphis.

According to some "Danger Zone" maps, most of Iowa would feel the seismic activity while indoors, while Southeastern Iowa could actually have unstable objects overturned.

While it may not lead to the same type of damage seen in California, a substantial amount of property damage could very well be evident in or around Iowa.  Unfortunately, earthquake coverage is not an automatic coverage on your homeowners policy.  It is an endorsement that can be added to your policy and normally functions with a percentage deductible.  By this, a person can have earthquake coverage at a 5% deductible, where the percent derived from your total dwelling coverage.  For example, if your home is insured to $100,000, your 5% deductible would be $5,000.

The cost of this endorsement ranges from company to company along with deductible options but is typically between $40 - $80 per year for this additional coverage being added to your existing homeowners policy.  Call your Absolute Agent for further coverage details.

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