 TITLE: A Homeowner’s Guide to Earthquake Insurance CONTENT: How Does Earthquake Insurance Work?\n-----------------------------------\nMost homeowners insurance policies do not cover damages caused by earthquakes. If you live in an area prone to these natural disasters, you can give yourself some peace of mind by purchasing additional earthquake insurance.\nThese plans work like most insurance policies. You pay annual premiums to keep the policy active. And if you have to file a claim, you will have to first pay the deductible before the policy kicks in to cover the damages.\nLike other types of insurance, your earthquake insurance policy could also come with certain limits, including coverage payout limits and restrictions on what is covered. The limits on your coverage, the amount of your deductible and the cost of the insurance premium are all important factors to consider when deciding if the additional coverage would make financial sense. END