Do I Need Earthquake Insurance in North Carolina?

When you think of North Carolina, hurricanes might come to mind before earthquakes. However, earthquakes, while less common, do happen and can cause significant damage. So, do you need earthquake insurance in North Carolina? Let’s dive into why you should consider adding this coverage to your homeowners insurance policy.

Earthquake Risk in North Carolina: Is It Real?

While earthquakes in North Carolina may not be as frequent or intense as those in places like California, they do occur. The state experiences small earthquakes regularly, with more significant quakes happening every few decades. For instance, in 2020, a 5.1 magnitude earthquake shook Sparta, North Carolina, reminding homeowners that seismic activity is possible.

Although it’s easy to overlook this risk, the potential for property damage from even a moderate quake could be financially devastating. Standard homeowners insurance policies do not cover earthquake damage, meaning homeowners could be left with significant repair costs.

What Does Earthquake Insurance Cover?

If an earthquake strikes and causes damage to your home, earthquake insurance can cover:

• Structural damage to your home
• Personal property inside the home, such as furniture and electronics
• Additional living expenses if you need to live elsewhere while repairs are made

While earthquake insurance won't cover everything (e.g., damage from floods after an earthquake would require flood insurance), it provides a crucial layer of protection.

How Much Does Earthquake Insurance Cost?

Earthquake insurance premiums vary depending on several factors, including:

• Location: Areas more prone to earthquakes may have higher premiums.
• Home construction: Older homes or homes built with certain materials may cost more to insure.
• Deductible: Earthquake policies typically have higher deductibles than standard home insurance policies, often ranging from 5% to 20% of your home’s insured value.

Should You Get Earthquake Insurance?

For many North Carolina homeowners, earthquake insurance may seem unnecessary. However, if you live in an area with a history of seismic activity or want to ensure you're covered for all potential risks, it's worth considering.

Conclusion: Don’t Leave It to Chance

While the risk of a catastrophic earthquake in North Carolina is relatively low, it’s not zero. If an earthquake strikes, you don’t want to be left without coverage. Earthquake insurance can offer peace of mind and financial protection from a potentially devastating event. Contact Harbor Insurance today to discuss adding earthquake coverage to your home insurance policy. Ensure you're prepared for the unexpected!