Earthquake
Insurance

Earthquakes are unpredictable and you can’t really plan for when they’ll happen, but you can be prepared if they happen — and buying earthquake insurance is a big part of the preparedness. Earthquake insurance coverage can help protect your finances if something happens to your home, condo or rental unit during an earthquake. But why do you need earthquake coverage? Well, because damage from earthquakes is NOT typically covered under your regular homeowners, condo or renters policies.

Additionally, while many home insurance policies will offer and earthquake endorsement, it’s typically expensive and has far less coverage than a stand-alone earthquake policy.

In fact, you may want to consider buying an earthquake policy even if if you don’t live in California or Hawaii. Scary as it sounds, states considered to be earthquake-free have recently seen an increase in earthquake activity. According to the National Earthquake Information Center, the US has approximately 12,000 to 14,000 earthquakes annually. Sure, a majority of these events are minor quakes, but it underscores why earthquake insurance coverage is an increasingly important protection no matter where you live.

Regardless where you live, when earthquakes happen they can create serious damage to your home’s foundation, or do structural damage and break windows. Without this coverage you may have to pay out of pocket for expensive repairs or to replace your personal property.

Affordable earthquake insurance is the goal. With most earthquake policies, you can tailor your coverage to fit your budget. Earthquake rates are generally driven by the dwelling replacement cost as well as factors like your home’s age, proximity to an earthquake fault, foundation and construction type and roof materials.

Another key factor in the cost of an earthquake insurance policy is the deductible. Depending on the type of policy, deductibles are either driven by the combined single limit or the specific coverages. So it’s important to understand your policy deductible before you choose as it will  have a big impact on your contribution after an covered loss. Regardless of the policy type, the higher the deductible, the lower the premium. Deductibles will typically range from 5% – 25%.

When buying an earthquake insurance policy you will have some options. The most common why to purchase an earthquake policy it to contact an insurance agent. An insurance agent can present you the option to purchase you earthquake coverage from a private company, or through as state sponsored authority.

In California, a CEA earthquake insurance policy is easy to buy.  You can add the coverage today, no need to wait until your homeowner policy comes up for renewal. However, your home insurance will have to be offered through a participating residential insurance company. The good news is that many of the larger carriers participate.