Whether earthquake insurance is considered a rip-off is a frequent debate among homeowners, largely driven by the reality of exceptionally high policy deductibles (often 10 to 25 percent of the home's total replacement value) and steep annual premiums in high-risk zones like California or parts of New Zealand. Because standard policies require you to pay out a massive percentage of your home's value before insurance kicks in, minor or moderate earthquake damage is entirely self-funded. However, for catastrophic structural collapses, having a policy prevents total financial ruin.
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