The main question that arose among most people was, what will happen if there is an earthquake, who is supposed to compensate the owners of the buildings and how it is supposed to be carried out. The answer to this is unfortunately not pleasant. The state will not really be able to compensate all citizens if, God forbid, there is a significant earthquake here with the collapse of hundreds and even dozens of structures (whether it is that it will not be able to fully compensate or whether it will not).
Want to leak? Send WhatsApp
Join Ono News’ Facebook page
Since the expectation is that at some point we will have to deal with such an earthquake and that is the presumed damage, then each of us needs to know how to prepare for it. The solution is, earthquake insurance.
What is earthquake insurance?
Basically, when we purchase home or business insurance then we have the option to also purchase an extension designed for earthquake insurance. That is, there is a specific coverage that addresses this.
This insurance coverage is coverage for the insured to choose from and the insured has the option to choose to remove it as well.
Before we get into the thickness of the beam, it is important to understand the meaning of giving up this coverage. If God forbid there is an earthquake and the building in which we live or work is damaged, then no one will compensate us for it. This means we will have to take care of ourselves an alternative place of residence or work, we will have to use all the resources available to us (beyond being a very significant expense, needless to say in such a period, it can be very problematic and drastically affect our lives).
Cases where there is earthquake coverage
We will now turn to three common cases where there is earthquake coverage
Earthquake coverage as part of home insurance
The default for coverage Earthquake insurance in the apartment policy Is that there is such coverage. That is, the insured receives the coverage from the insurance company. If he is not interested, then he must sign a waiver document. The reason coverage is by default is to prevent a situation where people who are unaware of the need for this coverage will not purchase it.
The default sets a deductible of 10 percent of the amount of damage. The insured can reduce to a lower percentage if he is interested. The amount refers solely to the reconstruction of the structure (without the value of the land). In cases of condominiums it is possible to add coverage also insurance for the value of the land.
Business policy
Similar to cases of residential buildings, also in cases of business properties it is necessary to think about coverage for earthquakes. But unlike home insurance, then in the case of business insurance the coverage has to be purchased and it is not a default. Make sure that the coverage is in the policy and that it is valid for all its parts, ie structure, content and also for loss of profits. It is also important to note that in the case of business insurance, the damage is counted within a period of 72 hours from the moment of the earthquake (that is, any loss or damage caused from the moment it occurred up to 72 hours later).
Natural damage coverage = earthquake coverage?
Business and other policies often include coverage for “natural disasters”. Important to know, this coverage does not cover earthquakes. Therefore, even if the policy states that there is coverage for natural disasters, there is no intention for earthquakes but for other damages (storms, floods, etc.) and this coverage should be added to the policy. Otherwise we may find ourselves in a situation where we are not covered in the event of an earthquake and damage to a structure or vehicle.
car insurance
In principle, car insurance does not include earthquake coverage. Therefore anyone who purchases such a policy should request an extension and request that it appear in the full policy. Naturally this will increase the price of the premium.
Summary
Since it is expected that at some point an extreme earthquake will occur in the State of Israel, it is very important to contact a professional and experienced insurance agent and purchase from him the necessary coverage for earthquake insurance for our home, business or car.
For more details you can contactEngelman Insurance Agency Specializing in the field.
We respect copyrights and make an effort to locate the rights holders in the photographs that come to us.