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SALT LAKE CITY -- A 5.8-magnitude earthquake that hit the East Coast Tuesday has brought renewed talk of earthquake insurance.
Centered in Virginia, the quake was felt as far north as Vermont and Maine and to the west in Chicago. Experts say even homeowners who do not live in quake-prone areas might want to consider earthquake insurance.
The Insurance Information Institute says about 5,000 earthquakes a year occur in the U.S. Earthquake damage is not covered under standard homeowners or business insurance policies.
Related:
East vs. West quakes: Way different creatures
The East Coast doesn't get earthquakes often but when they do strike, there's a whole lot more shaking going on.Insurance for wood-frame homes, which typically withstand quakes better than those made of brick, costs $1 - $3 per $1,000 of coverage per year in some western states. That means quake insurance for a $300,000 home would cost $300 to $900. The same insurance could cost less than 50 cents per $1,000 on the East Coast, according to MSNBC.
Experts also say homeowners can add riders for quake insurance on to existing property insurance. Renters and condo owners can find various levels of protection. And vehicles may be covered under comprehensive car insurance.
Deductibles range from 2 to 20 percent of the replacement value. In Utah, where the quake risk is higher than average, deductibles usually run in the 10 percent range.
Many homeowners nationwide do not purchase earthquake insurance. In California, only 12 percent of homeowners have earthquake insurance policies.
E-mail: aadams@ksl.com
