Earthquakes are usually quite brief, but may repeat. They are the result of a sudden release of energy in the . This creates seismic waves, which are waves of energy that travel through the Earth. The study of earthquakes is called .Seismology studies the frequency, type and size of earthquakes over a period of time.
Most earthquake insurance policies feature a high deductible, which makes this type of insurance useful if the entire home is destroyed, and less useful if the home is merely partially damaged. Rates depend on location and how close you live to known fault lines and the probability of an earthquake, and the stability of the soils in your area and the type of home. Rates are generally less expensive for homes made of wood, which withstand earthquakes better than homes made of brick or stone.
Earthquake insurance is a form of property insurance that provides coverage if your home is damaged by an earthquake. Most standard homeowner and renters policies will not cover earthquake damage. Earthquake insurance is usually a separate endorsement you must buy and add to your homeowner or renters policy, or purchase a separate earthquake policy.
Deductibles: The amount of money you will be responsible to pay without help from insurance is called a “deductible.” With earthquake coverage, your deductible is based on a percentage of your overall policy limit. If the structure of your home is insured to $500,000, the quake insurance deductible will typically amount to 15% of that, or $75,000. Some companies still offer a a lower deductible of 10% of the dwelling or policy limit.