Most ordinary insurance policies do not cover against earthquake damage. More
Homeowners insurance covers private homes in the event of damage or loss to the property or structure. Homeowners insurance will ensure you have the funds to repair your home if necessary and if it is deemed unliveable, for example due to flood or fire damage, your insurance company should pay for you to stay in alternative accommodation until the repairs are completed.
Homeowners insurance and home contents insurance will cover any of your personal belongings that are stolen, damaged or lost and the replacement cost. It is essential to thoroughly research and ensure you know what your policy does and does not cover. For example most insurance policies do not cover flood or storm damage, earthquake or termite damage so this protection would need to be taken out separately. Mortgage lenders will require that you take out a homeowner’s insurance policy as a condition of the loan and to protect themselves in the event of the house being destroyed.
The cost of your household insurance premium will vary depending on the insurance company you use, the size and location of your home, the value of your home and contents and a number of other considerations. If your home is situated in what is considered a higher risk region, for instance close to a body of water or in an area considered at threat of hurricanes or earthquakes you can expect to pay a higher premium for your homeowners insurance. If your home is fitted with sprinkler systems, fire extinguishers, security alarm systems and CCTV you can expect your premium to be lower.
There are six classifications for homeowners and household insurance coverage provided in a standard homeowner’s insurance policy. Click to the next page to read more.