The result is earthquake insurance policies with characteristically low premiums and high deductible rates.
Low premiums make it affordable, and high deductibles insure that the homeowner is covered and the insurance company remains in business. In places like California and Japan, the government has teamed up with insurance companies in the creation of special policies and government agencies to provide homeowners with better options for earthquake insurance. Homeowners are also encouraged to “retrofit” or reinforce their homes to meet seismic safety standards in order to minimize earthquake damage and keep insurance premiums at a reasonable level.
No one likes to think about it, but earthquakes are a part of life. In a high-risk area, prevention is impossible, but protection in the form of earthquake insurance is advisable.