How much is earthquake insurance?

 Many people who live in not only, earthquake prone states like California, ask this question. But places on the east coast too, particularly after the rather sizable tremors felt in unlikely places like New York, North Carolina and DC. And while it's true that only 17% of California residents carry earthquake insurance, you may not want to take the risk these folks are taking even in a state where an earthquake is more likely to happen than anywhere else in the country.

 Many people forgo purchasing disaster insurance, like earthquake coverage for various reasons. Some are for various misconceptions like, this kind of insurance is just frankly cost prohibitive. Other people live in places where frankly this type of disaster hasn't hit them or didn't cause sizable damage. There are also a few people around, still today, who believe that their current homeowner's insurance policy covers them against earthquakes. But really it's important to understand that this type of disaster insurance frankly is NEVER covered in a typical home insurance policy.

 The bottom line is that earthquake insurance doesn't have to be THAT expensive. Many people are surprised that in fact, the cost can be rather reasonable, especially if you live in an area not prone to these sort of disasters, like earthquakes.

 The typical cost of earthquake insurance runs between $10 to $30 dollars a month per $100,000 dollars of the value of the home. So if your home is valued at $100,000 dollars, you are looking at paying $10 to $30 dollars a month in ADDITION to your home owners insurance. This actually could be the peace of mind many homeowners are looking for when determining if earthquake insurance is even worth it.

 Is Earthquake Insurance Worth It?

 Well you can only honestly answer that question. But here are a few other things to consider, when trying to figure out if you should purchase earthquake insurance or not.

 Firstly, many people assume that FEMA (Federal Emergency Management Agency) will be there to pick up the pieces if disaster strikes. And while FEMA is often there after disaster strikes to provide for financial relief, many people fail to realize that FEMA money is distributed typically in the form of loan money. That means that this money must be repaid. The other dire assumption people make is that when an earthquake strikes and if it hits hard enough and destroys a home, that it may be easier to walk away through foreclosure.

 Walking away from a home after disaster has struck, could be financially devastating and simply ruin a homeowner's personal credit. Many people may justify walking away even more after an earthquake and having little to no equity in a home. But let's face it. Walking away from a home after an earthquake is not worth it, not for the price of $10 to 30 dollars a month per $100,000 dollars.

Cheap Earthquake Insurance

Of course things like a higher deductible can further drive down your monthly disaster insurance payment. And like any other homeowner's insurance policy, where you live will also affect your insurance premium. Your expectations should be set, if you live in earthquake prone areas including California and Seattle.

 So when asking how much is earthquake insurance, you'll know know if it's worth it and what implications there are if you don't get it.