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Don't Hold Out on Home Insurance
Turn on the news and you will probably see footage of a natural disaster somewhere in the world, flooding, hurricanes, wild fires and earthquakes top the list. Everyone in the country is painfully aware that one day California will be hit by "a big one," even more so if you actually live in California. Recent major earthquakes in Japan, China, Indonesia , Haiti and Chile have underscored this fact even further. While most people in California have survival kits and emergency plans in place, few have actual earthquake insurance on their homes. Recent studies show that less than 12% of home owners in California have it and less than 10% of businesses do. The rates for the rest of the country are even lower.
Most people in the United States think they are safe from earthquakes but as a rare, recent, medium level earthquake in Virginia proved, that is far from the case. In the 1800's Memphis, TN., experienced such a violent quake that the Mississippi River flowed backwards and that fault line is still considered active. Two years ago Baja, Mexico had a quake that was felt as far away as Arizona. You might think that a minor quake doesn't warrant insurance, but all it takes causes is a few cracks in the foundation and it can costs you thousands. Maybe Arizona doesn't have a major fault line, but what if Mexico gets hit by a big one and does damage in Tucson, they probably don't have insurance there. If you are looking to buy a house try [home loans|home loan|mortgage|mortgages] for a great loan.
Meet Rick Waugh of Louisa, VA., a homeowner who found this out the hard way. His home suffered cracks in the foundation during the Virginia quake. The damages cost up to $40,000 and he had no insurance to cover it. Try paying for that out of pocket. To make matters worse, many homes on the East coast and the South are much older houses and not built up to modern standards. Due to this they are far more likely to take damage in the event of even a milder earthquake.
"We didn't even know there was an earthquake policy available for Virginia," Rick said. Most people don't, because they believe the larger part of the United States is immune to earthquakes. However they are wrong. In fact, 90% of the country lies in potential quake areas. Despite all this, don't be afraid to check to what your mortgage rate would be.
The last major quake in Southern California was a 7.9 magnitude that hit near Bakersfield in 1857. If the same quake happened now it is estimated it would cause around $150 billion in damages. Guess how much of that is insured? Try 15 to 20 billion.
One big issue is that people believe if a "big one" hits, insurance companies will be unable to cover all the damages. That may or may not be true, but as Rick Waugh found out, it doesn't pay to take a risk. Besides, isn't some insurance better then none?
Given the fact so many live in potential earthquake areas you might want to rethink passing on that policy, it might seem expensive at first, but compared to rebuilding your entire home, suddenly it isn't so bad.
Most people in the United States think they are safe from earthquakes but as a rare, recent, medium level earthquake in Virginia proved, that is far from the case. In the 1800's Memphis, TN., experienced such a violent quake that the Mississippi River flowed backwards and that fault line is still considered active. Two years ago Baja, Mexico had a quake that was felt as far away as Arizona. You might think that a minor quake doesn't warrant insurance, but all it takes causes is a few cracks in the foundation and it can costs you thousands. Maybe Arizona doesn't have a major fault line, but what if Mexico gets hit by a big one and does damage in Tucson, they probably don't have insurance there. If you are looking to buy a house try [home loans|home loan|mortgage|mortgages] for a great loan.
Meet Rick Waugh of Louisa, VA., a homeowner who found this out the hard way. His home suffered cracks in the foundation during the Virginia quake. The damages cost up to $40,000 and he had no insurance to cover it. Try paying for that out of pocket. To make matters worse, many homes on the East coast and the South are much older houses and not built up to modern standards. Due to this they are far more likely to take damage in the event of even a milder earthquake.
"We didn't even know there was an earthquake policy available for Virginia," Rick said. Most people don't, because they believe the larger part of the United States is immune to earthquakes. However they are wrong. In fact, 90% of the country lies in potential quake areas. Despite all this, don't be afraid to check to what your mortgage rate would be.
The last major quake in Southern California was a 7.9 magnitude that hit near Bakersfield in 1857. If the same quake happened now it is estimated it would cause around $150 billion in damages. Guess how much of that is insured? Try 15 to 20 billion.
One big issue is that people believe if a "big one" hits, insurance companies will be unable to cover all the damages. That may or may not be true, but as Rick Waugh found out, it doesn't pay to take a risk. Besides, isn't some insurance better then none?
Given the fact so many live in potential earthquake areas you might want to rethink passing on that policy, it might seem expensive at first, but compared to rebuilding your entire home, suddenly it isn't so bad.
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