Many children hear the phrase, “It’s better to be safe than sorry” throughout their childhood. Even as adults, the phrase seems to come back around when purchasing insurance, raising a family, working a job or planning anything.
When it comes to weather in Indiana, fellow Hoosiers know that anything is possible. In Indiana, Mother Nature doesn’t always give a heads-up to when more aggressive and damaging weather may strike. That’s why being prepared by having adequate insurance coverage, emergency preparedness kits and extreme weather safety plans can be vital to you and your loved one’s future.
Tornadoes, wind and hail are a few extreme weather events that come to mind when thinking about preparation. But, what about earthquakes? Because Indiana is located near two major fault lines, Hoosiers are cautioned to be prepared for earthquakes, as well.
If the unexpected does happen and an earthquake hits, does home insurance provide coverage for earthquakes in Indiana? At Indiana Farm Bureau Insurance, policyholders can purchase an earthquake endorsement, which is optional coverage that can help assist with covered losses resulting from an earthquake in Indiana. Although earthquakes do not happen often in Indiana, it’s better to be safe than sorry and consider purchasing earthquake coverage with your homeowners insurance policy.
Does home insurance cover earthquake damage in Indiana?
The answer depends on the coverage provided by your policy.
A homeowners insurance policy at Indiana Farm Bureau Insurance can protect your home, things inside your home and your assets through dwelling, personal property and liability coverages. There are many additional coverages and endorsements you can purchase with your homeowners insurance policy for additional peace of mind.
A typical homeowners insurance policy does not include earthquake coverage. At Indiana Farm Bureau Insurance, you can purchase earthquake coverage as an optional coverage that can assist with covered losses related to an earthquake.
Here are a few of the homeowners insurance policies offered at Indiana Farm Bureau Insurance:
HO-2 Policy – This policy offers coverage called Named Perils for Coverage A and B.
HO-8 Policy – This policy was created to offer basic coverage including Named Perils on Coverages A, B and C, as well as Functional Replacement Cost of Coverages A and B with Actual Cash Value on Coverage C.
Parts of Indiana have moderate earthquake risks to consider
Although the risk of earthquakes in Indiana may be lower than in states like California, Alaska and Hawaii, they can and have happened in the state of Indiana.
There are several ways of looking at earthquake coverage. It’s difficult to predict when an earthquake may occur, but if you live in one of the most at-risk counties in Indiana, it may be worth it to consider purchasing earthquake coverage.
What factors affect earthquake insurance rates?
Many factors affect earthquake coverage rates at Indiana Farm Bureau Insurance. Rates may vary based on a variety of factors:
Policy – Rates may vary based on your policy type. Learn more about the type of policy you have or may be looking to purchase from a local insurance agent.
Coverage - Rates may vary based on the coverage you purchase. Coverage A (Dwelling), Coverage B (Contents) and Coverage C (Other Structures) all have varying rates.
Construction type - Rates may vary if the dwelling or structure is masonry (a dwelling with external wall covering of concrete block, brick, brick Veneer, natural stone or limestone) versus frame (dwelling with external wall coverages of wood, aluminum, vinyl, hardboard, stucco or concrete composition board.)
Deductible - Rates may vary based on the chosen deductible. A deductible is the amount of money you will have to pay before the insurance will pay any claims. Indiana Farm Bureau Insurance offers a 10% deductible and a 15% deductible on a policy’s earthquake coverage. The 15% deductible’s rates are lower.
County - Rates may vary based on the county in which the dwelling or structure is located. Counties closer to an earthquake fault line have higher rates. Below is a list of the counties and their level of rates based on their location to a fault line:
Gibson, Posey and Vanderburgh fall closest to a fault line and have the highest rates.
Clay, Greene, Monroe, Perry, Sullivan, Crawford, Knox, Orange, Pike, Vermillion, Daviess, Lawrence, Owen, Putnam, Vigo, Dubois, Martin, Parke, Spencer and Warrick fall second closest to a fault line and have the second highest rates.
All other counties in Indiana have lower rates than the counties listed above.
Earthquake insurance can be added to existing homeowners insurance policies
If you are interested in purchasing earthquake coverage for your existing homeowners policy, the next step is to contact your local insurance agent today.
Choosing earthquake insurance in Indiana
At Indiana Farm Bureau Insurance, you can choose how much earthquake coverage you’d like to purchase on your homeowners insurance policy. You can also decide your policy’s earthquake coverage deductible, either 10% or 15%.
In Indiana, it may be difficult to predict when an earthquake may occur, but if you live in one of the most at-risk counties, it may be worth it to consider purchasing earthquake coverage. The cost of adding earthquake coverage will add to the cost of your homeowners premium; however, the premium may be much less than the out-of-pocket costs, especially if your home requires rebuilding due to the earthquake. Remember, coverage for damage resulting from an earthquake is excluded from standard homeowners policies. The next step to add this optional coverage is to contact a local Indiana Farm Bureau Insurance agent today.
FAQs
Is earthquake damage covered by homeowners insurance?
Damage to your home as a result of an earthquake is not covered by a basic homeowners insurance policy at Indiana Farm Bureau Insurance. You have to purchase earthquake coverage for additional protection. Never assume something is covered in your insurance policy. Instead, ask your local insurance agent what is and what is not covered in your policy today.
How much does earthquake insurance cost in Indiana?
The cost of earthquake insurance varies based on many factors. At Indiana Farm Bureau Insurance, coverage may cost as little as $10.The cost of earthquake coverage may vary in areas located near fault lines that are at higher risks for experiencing earthquakes.
What does earthquake insurance cover that regular insurance does not?
Earthquake insurance covers direct physical loss to property caused by earthquakes. Earthquake coverage does not cover loss resulting directly or indirectly from flooding of any type, whether caused by, resulting from, contributed to or aggravated by an earthquake. This coverage does not include the cost of filling land.
What is the earthquake risk in my area of Indiana?
The earthquake risk in Indiana depends on the geographical location of where you live. Counties closer to an earthquake fault line will have higher rates. Below is a list of the counties and their level of rates based on their location to a fault line:
Gibson, Posey and Vanderburgh fall closest to a fault line and have the highest rates.
Clay, Greene, Monroe, Perry, Sullivan, Crawford, Knox, Orange, Pike, Vermillion, Daviess, Lawrence, Owen, Putnam, Vigo, Dubois, Martin, Parke, Spencer and Warrick fall second closest to a fault line and have the second highest rates.
All other counties in Indiana have lower rates than the counties listed above.