Earthquake insurance is a form of contingency coverage that provides property owners with a measure of security in the event a natural disaster strikes. Usually purchased by those in areas with high earthquake probability, these insurance policies provide people with peace of mind. They contain provisions that allow homeowners to recover compensation if their home is destroyed or damaged in an earthquake. This means that if an earthquake hits, a policy holder will have the ability to file a claim with the insurance company. The company will send out its insurance appraiser to determine how much value has been lost in the home. Typically, earthquake insurance policies will cover up to the full value of the home, although individual property owners can take out small policies if they wish. They may be combined with other forms of natural disaster insurance, including hurricane coverage and flood insurance in certain parts of the country.
