Your standard home insurance policy doesn’t cover earthquake damage. Insurance companies expressly exclude earthquake damage from your policy without this endorsement. One of the largest fault lines in the United States sits just outside western Kentucky near New Madrid, Missouri. This fault line produced an earthquake in the 1800s that residents felt across a two million square mile area – nearly two-thirds of the country. When you consider this history, earthquake insurance offers inexpensive peace of mind for your Kentucky home.
What Is Earthquake Insurance?
- Insurance companies typically offer earthquake insurance as an endorsement you must add to your Kentucky home insurance policy.
- Your home insurance won’t cover earthquake damage without this endorsement.
- Several factors determine your price: zip code, structural details, square footage, and dwelling coverage amounts.
- You can expect to pay $100-$300+ annually. Your final cost depends on your location, deductible amount, and home size.
What Else Should I Know About Earthquake Insurance in Kentucky?
- Earthquake insurance typically requires a larger deductible than the rest of your policy.
- Insurance companies commonly require 10% deductibles. If your “Dwelling Coverage” totals $500,000, you’ll pay a $50,000 earthquake deductible.
- Everyone in Kentucky could benefit from knowing their home has protection in the event of an earthquake. However, you should also factor in your specific location.
- The map below shows where earthquake likelihood increases as you move closer to the New Madrid fault line.
- If you live in these Kentucky counties, we highly recommend earthquake insurance: Daviess, Ohio, Butler, Logan, Todd, Muhlenberg, McLean, Henderson, Webster, Hopkins, Christian, and Union.
- If you live in these Kentucky counties, earthquake insurance becomes critical: Crittenden, Caldwell, Lyon, Trigg, Calloway, Marshall, Livingston, McCracken, Graves, Ballard, Carlisle, Hickman, and Fulton.
The Bottom Line
Nobody knows when the next major earthquake will strike our region. The likelihood of damage increases as you move closer to the New Madrid fault. However, everyone in the state faces potential damage in the event of a major catastrophe.
With this in mind, reach out to your agent to inquire about your current earthquake coverage. If you don’t currently have protection, ask for a quote to see how much adding this coverage would cost.
At Aspen Ridge Insurance, we offer a free, no-obligation policy review to ensure you have proper coverage. Click here to reach out anytime!
References
https://kgs.uky.edu/kgsweb/olops/pub/kgs/SP17_12.pdf
https://www.uky.edu/KGS/geologichazards/research_assessment.htm