It is usually a tough decision whether you should buy earthquake insurance or not. A few earthquakes strike the United States every year, with some areas falling in high risk tremor zones and some others in low risk zones. However, it is important to buy earthquake coverage, for you never know when another tremor might strike you, irrespective of the fact where you live. Coverage may be expensive in a high risk area.
Does Your Homeowners Policy Cover Earthquake
Your standard residential or homeowner’s insurance policy does not cover earthquake damage, nor does your condominium, mobile home owners, or renters insurance policies offer any coverage against earthquake damage. Earthquake insurance must be bought separately, like flood insurance.
Do I Need Earthquake Insurance?
Earthquake insurance is a must if you live in a high fault zone, especially California, where there is no such area that can be designated as low risk zone in the state for earthquakes.
If you are confused whether you should buy coverage against earthquake damages, consider the following points:
- If an earthquake strikes and devastates your home, can you afford to replace your home belongings?
- If your home is severely destroyed in the earthquake and you have to find temporary dwelling, how much you would be required to pay as rent?
- If you have your own home, can you risk losing your home equity in the event of damages from an earthquake?
- If your house is severely damaged in the tremor, how much would rebuilding cost?
- If you have a mortgage on your home, can you afford repaying the loan while making payments for rebuilding or replacing your home?
Most earthquake insurance policies offer a 10 or 15 percent deductible. Typically your earthquake coverage may also include cost for hotel room, apartment, temporary rental home, restaurant meals, furniture rental, relocation, storage, laundry, utility installation in temporary setting.
Timely reporting of damage and loss from earthquake to your insurance company is important. According to the law, an insurance company can reject claims not reported within a year of the “inception of the loss,” when you first notice property damage. Therefore, it is important that whenever you perceive damage, you must act immediately to report the earthquake insurance claim.
In California the majority of earthquake policies is written through the CEA (California earthquake authority) which is a consortium of insurance carriers that pool resources. However, many people don’t know that there are other private earthquake insurers out there. We have access to a few different earthquake markets which can tailor the right coverage for your home. Some offer deductibles as low as 5%. Others offer more comprehensive coverage than offered by the C.E.A.
Call us now or fill out our contact form to get additional information.