Ask Kim discusses earthquake insurance

Dear Kim,

What are your thoughts on earthquake insurance in our area?  I’m seriously thinking about taking out a policy.  Some people I’ve spoken to don’t think it’s necessary.

Kelli

Topeka

Dear Kelli,

Ideally, you never have to file a claim on anything you have insured.  That means your house, your car, or your body.  Life is pretty good if you don’t ever have to use an insurance policy. 

Seriously though, insurance is purchased to minimize your risk.  When you buy insurance, you essentially transfer the cost of a loss the insurer.  There were ninety-one quakes in Kansas last year.  Is it possible for your home to suffer damage from an earthquake?  Certainly!  Could it be hit by tornado, or struck by lightning?  Sure.  We insure things of value, so they can be replaced after a loss. 

In my opinion, the cost of earthquake coverage in our area is affordable (compared to other parts of the country.)  Unless you can afford to repair or replace your home without insurance, this coverage is necessary. The only question to ask yourself is:  Can I afford to be without it?  Then decide.

Good luck!

Have a question?  Ask Kim!    https://www.ksnt.com/ask-kim-a-question/