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CONSUMER ALERT: Division of Insurance offers tips for earthquake insurance

Contact: Yeraldin Deavila, Public Information Officer
Phone: (775) 687-0772
E-mail: ydeavila@doi.nv.gov

FOR IMMEDIATE RELEASE – July 18, 2019 

CONSUMER ALERT:

 Are you prepared with adequate insurance coverage for a major earthquake?
Division of Insurance offers tips for earthquake insurance

Carson City, NV – With the amount of seismic activity recently, including two significant earthquakes in California that were also felt by residents in Las Vegas, the Division encourages consumers to be proactive and learn more about earthquake insurance.

“Just as with flood coverage, the time is now to consider earthquake insurance before disaster occurs,” explained Insurance Commissioner Barbara Richardson. “To determine if earthquake coverage is right for them, consumers should determine their risk and balance it against the cost to purchase an earthquake policy.”  

Typical homeowner’s and renter insurance exclude coverages for flood and earthquake; these protections must be purchased separately. Consumers who don’t have such coverage may be responsible for any damage to their property or injuries that may occur after an earthquake.

Some things to consider to help determine if earthquake coverage is right for you are:

  • How much would it cost to repair or rebuild your home? How much of that cost could you personally pay?
  • How much would it cost to replace your household items (such as furniture, appliances, electronics, and clothing)? Could you afford it? Ask what you need to do to be sure the insurance will cover all of your personal property, especially valuable or breakable items such as art work or porcelain.
  • How much would it cost to find a temporary place to live because you couldn’t live in your home after an earthquake? This coverage pays the extra costs you have to pay because you aren’t able to live in your home. For example, it would pay rent for temporary housing while you continue to pay your home mortgage. 

Premiums for earthquake insurance vary by the home’s characteristics and the level of deductible selected. To determine the cost and if earthquake coverage is needed, consumers should contact their broker or insurance agent.  For more detailed information, the Division also publishes a Consumer’s Guide to Earthquake Insurance at http://doi.nv.gov/uploadedFiles/doinvgov/_public-documents/News-Notes/EarthquakeInsurance_B.pdf

About the Nevada Division of Insurance

The State of Nevada Division of Insurance, a Division of the Nevada Department of Business and Industry, protects the rights of Nevada consumers and regulates Nevada’s $14 billion insurance industry. The Division of Insurance has offices in Carson City and Las Vegas. In 2018, the Division investigated more than 3,100 consumer complaints and recovered over $8.4 million on behalf of consumers. For more information about the Division of Insurance, visit DOI.NV.GOV.

 

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