The Importance of Earthquake Insurance and How to Choose It: To Protect You and Your Assets

table of contents

Introduction
1. Importance of earthquake insurance

2. Reliability of insurance companies

3.Earthquake insurance coverage

4.Earthquake risk assessment

5. Seismic resistance of buildings

6. Presence or absence of additional options

summary

Introduction

Earthquakes are one of the natural disasters that occur around the world and have a high potential for causing damage. Therefore, earthquake insurance plays a very important role in protecting your assets and livelihood. In this article, we will explain in detail the importance of earthquake insurance and how to choose it.

 

1. Importance of earthquake insurance

1-1 Asset protection

Earthquakes can cause severe damage to buildings and land. Collapses and damages can result in significant repair and reconstruction costs. Earthquake insurance protects your assets from damage caused by an earthquake. Insurance companies provide financial support to victims by compensating for necessary repair costs and building reconstruction costs when damage occurs.

 

1-2 Family safety and maintenance of life

When an earthquake strikes, your family's safety comes first. By subscribing to earthquake insurance, you can reduce the burden of maintaining your family's life. In the event of a disaster, earthquake insurance will cover temporary housing costs, provide temporary housing, and help families live in a safe and comfortable environment. Insurance companies also provide support for rebuilding livelihoods in the affected areas.

 

1-3 Business protection

Earthquakes can cause extensive damage not only to houses, but also to commercial facilities and businesses. By subscribing to earthquake insurance, you can receive income compensation and support for repair costs when business activities are temporarily suspended. This helps keep your business alive and helps you get through the recovery period.

 

1-4 Stability of mind

Earthquakes can cause not only physical damage, but also psychological effects. By purchasing earthquake insurance, you can reduce stress in the event of a disaster. Insurance companies provide prompt response and support, and support the emotional stability of disaster victims. Earthquake insurance also includes disaster hotlines and advisory services, so you can get the information and help you need.

 

All in all, earthquake insurance plays a very important role in protecting your assets from earthquake damage, keeping your family safe and lively, and protecting your business. If you live in an area with a high risk of natural disasters, or if you consider the possibility of damage from an earthquake, you should actively consider purchasing earthquake insurance. It is important to choose earthquake insurance that meets your needs through expert advice and consultation with your insurance company.

 

 

2. Reliability of insurance companies

2-1 License and Authorization

A reputable insurance company has the appropriate licenses and authorizations. Check to see if your national or local insurance regulator oversees your company's operations and finances. For example, in the United States, state Departments of Insurance license and supervise insurance companies.

 

2-2 Financial stability

An insurer's financial stability is critical in evaluating its long-term reliability. Make sure your company has enough funds for future insurance claims. Reputable insurers generally publish their rating results from independent rating agencies.

2-3 Customer Satisfaction and Reputation

It is also important to research the customer satisfaction and reputation of the insurer. Use online review sites, word of mouth, and reports from consumer protection agencies to find out what other customers are saying and what their experiences are. Insurers with high customer satisfaction are more likely to provide good customer service and smooth claims processing.

 

2-4 History and Achievements

An insurance company's history and track record are also helpful in assessing credibility. A company that has been in stable business for many years and has earned the trust and respect of the insurance industry is generally considered to be highly reliable. Companies with experience and expertise in a particular region or country are also likely to be able to better serve local needs.

 

2-5 Customer support and after-sales service

Reliable insurance companies also focus on customer support and after-sales service. It's important to choose a company that provides prompt and effective support should you have questions or problems with your insurance. Check the quality of support and response through your insurance company's website or by contacting customer service.

3.Earthquake insurance coverage

Earthquake insurance coverage varies depending on the insurance company and contract details. In general, the following items are often covered

Damage to Buildings: Repair costs for collapses and damage caused by earthquakes.

Damage to household goods: damage to furniture, electrical appliances, valuables, etc. due to an earthquake.

Temporary Housing Expenses: Expenses for temporary housing in the event that it becomes impossible to live due to an earthquake.

Business Loss: Compensation for income when business activities stop due to an earthquake.

Land damage: Damage to land due to ground movement caused by an earthquake.

 

3-1 Contents of coverage

Check the details of your insurance policy to understand what damages are covered. It is important to choose insurance with adequate coverage for your assets.

 

3-2 Deductibles and insurance premiums

① Deductible (self-pay amount)

The deductible amount is the amount that the insured must bear in the event of damage under the insurance contract. In the case of earthquake insurance, you need to pay for the deductible amount when damage occurs. For example, if the deductible in the contract is 100,000 yen, no insurance will be paid if the damage is less than 100,000 yen. The higher the deductible, the more you will have to pay out-of-pocket in the event of damage. The deductible amount varies by insurance contract, so be sure to check the contract details carefully.

 

②Insurance premium

An insurance premium is a fee that must be paid when purchasing earthquake insurance. Insurance premiums are calculated by the insurance company taking into consideration the earthquake risk, the value of the insured's assets, and the content of the insurance contract. Premiums are usually paid as an annual fee, but some insurers may also offer semi-annual or quarterly payment options. It is important to compare insurance premiums, as they vary depending on the content of the policy, the deductible amount, and the value of the insured assets.

 

Several factors are involved in determining premiums. Common elements include:

Valuation of the insured property: Premiums are calculated based on the valuation of the insured property. The value of the building and the appraisal value of the land are taken into consideration.

Choosing a deductible: The higher the deductible, the lower the premium, but the more you will have to pay out-of-pocket in the event of damage.

 

4.Earthquake risk assessment

4-1 Evaluation of seismic activity

Seismic activity is an index that indicates the frequency and scale of earthquakes in each region. Earthquake catalogs, past earthquake data, seismic network data, etc. are used to evaluate seismic activity. By analyzing this information, we evaluate the probability of an earthquake occurring and the maximum seismic intensity, etc., and calculate the earthquake risk for each region.

 

4-2 Evaluation of ground conditions

Ground conditions have a great influence on the shaking of an earthquake and the degree of earthquake damage. The hardness of the ground and the possibility of liquefaction are evaluated and considered as elements related to earthquake risk. Geological surveys and seismic motion prediction models are used to evaluate ground conditions.

 

4-3 Evaluation of earthquake resistance of buildings

The seismic resistance of a building is an important factor in evaluating how much damage a building will sustain during an earthquake. The structure of the building, seismic design, the presence or absence of reinforcement, etc. are taken into consideration. Seismic performance evaluations are conducted based on the Building Standards Act and seismic design standards to assess the earthquake risk of buildings.

 

4-4 Evaluation of regional characteristics

Earthquake risk assessment also takes into account local characteristics and regional damage trends. For example, there may be additional risk factors associated with earthquakes in some regions, such as tsunamis and earthquake fires.

 

 

5. Seismic resistance of buildings

5-1 Building structure

The structure of a building has a great impact on its seismic resistance. Insurance companies evaluate how well a building's structure can withstand the forces and shaking of an earthquake. In general, structures with high earthquake resistance, such as steel frames and reinforced concrete structures, tend to be highly evaluated by insurance companies.

 

5-2 Seismic design

Seismic design is an important factor that indicates how much resistance a building has against earthquakes. Insurance companies evaluate whether earthquake-resistant design is properly implemented based on standards such as the Building Standards Act and earthquake countermeasure standards. Seismic design includes the ability to vibrate flexibly against shaking during an earthquake, and the appropriate distribution and absorption of seismic forces.

 

5-3 Presence or absence of reinforcement

The reinforcement status of the building also affects the evaluation of earthquake resistance. Insurers ensure that buildings have reinforcement measures to minimize damage from earthquakes. For example, reinforcement of columns and walls and installation of load-bearing walls are considered.

 

5-4 Construction age and maintenance management

The construction age and maintenance status of the building are also related to the evaluation of earthquake resistance. Newer buildings are likely to be built to the latest seismic design standards and may receive higher ratings from insurance companies. It is also evaluated that regular maintenance and inspections are performed and that the building is properly managed.

 

6. Presence or absence of additional options

6-1 High-value property insurance

You can purchase additional insurance for expensive buildings and valuables that cannot be covered by the basic coverage of earthquake insurance. This allows for more comprehensive protection of the value of the insured's assets.

 

6-2 Damage Limit Expansion Option

Basic coverage in earthquake insurance may be limited to paying up to a certain amount of damage. By adding the damage limit extension option, you can cover even higher damages.

 

6-3 Rent compensation option

This is an option that compensates for part or all of the rent in the event that a resident is forced to move out due to damage to the building due to an earthquake. The loss of rental income can be covered until the insured person repairs the building.

 

6-4 Additional Expense Cover Option

This is an option that compensates for additional costs (eg temporary housing costs, demolition and removal costs, rebuilding costs, etc.) incurred when restoring buildings due to earthquake damage. You can cover additional costs for repair work by adding an additional cost coverage option.

 

6-5 Risk Reduction Service

Some insurance companies offer services to reduce earthquake risk. For example, it includes a consultation desk for seismic diagnosis and seismic reinforcement work, and advice on safety measures in the event of an earthquake.

 

 

summary

Earthquake insurance is essential to protect your assets and livelihood from earthquake damage. Choose the earthquake insurance that suits you by considering the reliability of the insurance company, coverage, deductibles, premiums, and additional options. It is also advisable to seek professional advice. Recognize the importance of earthquake insurance and purchase appropriate insurance to keep you and your family safe.