Why is earthquake insurance typically necessary?

Earthquake insurance is typically necessary because most homeowners insurance policies do not cover damage caused by earthquakes. Standard homeowners insurance generally protects against a variety of perils, such as fire, theft, and wind damage, but it explicitly excludes coverage for earthquakes. This means that if an earthquake were to cause significant damage to a home, the homeowner would not be able to rely on their standard policy for financial compensation unless they had purchased a separate earthquake insurance policy.

This necessity for earthquake coverage underscores the importance of reviewing and understanding the specifics of homeowners insurance policies and assessing vulnerability to earthquakes based on geographical location. Homeowners in areas that are seismically active should consider obtaining earthquake insurance to provide adequate protection against potential losses that could arise from such natural disasters.