Earthquakes are one of those acts of God for which people rarely plan. After all, how often do earthquakes really occur? Surprisingly, there are 55 earthquakes per day on average around the world. With figures like that, the decision to get first-dollar earthquake insurance becomes a lot simpler.
What is First-Dollar Earthquake Insurance?
First-dollar insurance is a special kind of policy. In it, the insured doesn’t have to pay anything until it comes time to make a claim. There are no co-pays or out-of-pocket expenses until an insurable event occurs. In this case, you wouldn’t have to start paying for the insurance until you were affected by an earthquake.
However, it’s important to note that monthly premiums are generally higher than standard insurance plans. The insurance company assumes much more risk, paying the cost up front. There’s also usually a lower maximum amount allowed for the policy’s limit.
Why Get First-Dollar Earthquake Insurance?
Earthquakes are common worldwide, but they may occur less often in your particular location. You may have never experienced an earthquake powerful enough to cause any damage. As such, this kind of policy is perfect. If you never get hit by a strong earthquake, you never have to pay a dime. But if you do get hit, you’ll be glad to be covered.
First-dollar insurance is the perfect option for something rare but dangerous, like earthquakes.