Ideally, your earthquake insurance policy covers the cost to replace or repair your damaged property. There are several options to consider when picking a plan, including:

• Does the policy cover only the dwelling? Are accessory structures, such as garages, also included?
• Will your policy pay for the contents of your home and for additional living expenses if your home is badly damaged or destroyed?
• Are there any exclusions or limitations to coverage?
• What deductible must you pay before the insurance kicks in?

How much does earthquake insurance cost?

Earthquake insurance rates are determined differently by each insurance company and can vary widely depending on several rating factors.
Generally, older homes cost more to insure than new homes. Wood homes get better rates than brick ones because wood tends to withstand quake stresses better.

The New Madrid Fault, which runs through Arkansas, Kentucky, Missouri and Tennessee, also has insurers worried. According to the Insurance Information Institute, there’s a 40 to 63 percent chance the region will suffer an earthquake with a 6.0 magnitude in the next 15 years. The availability of earthquake coverage has become an issue in some regions of those states. For those who don’t remember, which would include anyone not alive in 1811, an earthquake struck the New Madrid area with enough force to change the course of the Mississippi river and ring church bells on the east coast.

Possibly the most important thing to know about earthquake insurance is this: A basic homeowners policy does not cover earthquake damage. Even if you don’t live in an area where earthquakes are common, it’s possible you might need earthquake insurance. Although homeowner, condo and rental insurance policies do not cover damage caused by an earthquake, coverage can be purchased as an endorsement or a separate policy. Earthquake insurance can be quite inexpensive depending on where you live. Contact your insurance agent or company to find out what the costs would be for your home.