Personal Liability Insurance: What Happens When Someone Gets Hurt on Your Property

We usually worry more about hurricanes than we do earthquakes here in New England.  But just this month, two small earthquakes were recorded off the coast by experts at Boston College’s Weston observatory. In fact, during an average year, 30 to 40 earthquakes strike New England, with a major earthquake striking New England every 500 to 900 years, bookmakers would say the odds of one happening tomorrow are 1 in 255,500. That’s better than the odds of being hit by lightning this year, 1 in 700,000, or of getting a royal flush in a game of five-card stud, 1 in 649,740.

So how much does a basic homeowner’s policy cover should you become a victim of an earthquake?  Well, the truth is your Massachusetts homeowner’s policy   does not cover what is referred to as “Acts of God”, which include earthquakes, hurricanes, tornadoes, floods, or any other natural disaster.  On August 23, 2011 a 5.8 earthquake struck the Washington, D.C. area and many homeowner’s found that the unusual incident was not covered by their insurance policies. According to the Insurance Information Institute, the August 23, 2011 earthquake may have caused $200 million to $300 million in damage across the East Coast.

Does this mean that you will be left to pay out-of-pocket costs in the event that your home is damaged by an earthquake? The good news is no! You need not be financially burdened with potentially overwhelming costs of post earthquake damages. Provided you purchase a rider on your homeowner’s policy to cover you.  It’s actually not very expensive to buy a rider to your existing coverage. In many cases, the cost may only be $100 – $200.

At Vargas & Vargas Insurance, we want to help keep you informed and aware of the importance of Earthquake Insurance and the risks of not having such a policy. Contact us today to find out more!