February is Earthquake Awareness Month, making it the perfect time to review both your emergency preparedness practices and insurance coverage.

Traditional homeowners and business policies don’t cover damage from earthquakes, so additional coverage needs to be purchased in order to lighten losses if one occurs.

The Tennessee Department of Commerce & Insurance (TDCI) and the Tennessee Emergency Management Agency (TEMA) recently shared some things consumers should keep in mind while shopping for earthquake insurance, including:

  • Don’t forget about the deductible. The deductible on earthquake policies is usually 10% to 20% of the coverage limit. This means if a home is insured for $200,000, a 10% earthquake deductible would be $20,000.
  • There may be separate deductibles. Depending on the policy the home, personal property and outside structures may all have individual deductibles, so make sure to familiarize yourself with the policy.
  • Some policies may pay up to the total of one or more of the coverage limits if the damage exceeds those limits. Speak with your insurance agent to make sure you understand all of these coverages and their deductibles.
“Preparedness is critical to your resilience after a natural disaster,” TDCI Commissioner Carter Lawrence said in a release. “During Earthquake Awareness Month, I urge consumers to prepare for the potential financial impacts of earthquakes by learning more about earthquake insurance today and making sure that they have adequate insurance coverage in the event of an earthquake.”

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Brittney Meredith-Miller

Brittney Meredith-Miller is assistant editor of PropertyCasualty360.com. She can be reached at [email protected].

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