Why You Should Have Earthquake Insurance

Earthquakes are natural disasters that are often unpredictable and destructive. If you live in California, you may already know that the risk for damage from an earthquake is significant. However, many homeowners aren’t aware that their homeowners, renters and condominium insurance may not cover earthquake damage. Supplemental earthquake insurance is vital if you live in an area prone to seismic activity.

Suppose you’re unsure about whether you need earthquake insurance. In that case, you need to determine if you can afford to rebuild or repair your home if it’s damaged, replace all your personal belongings or pay for temporary housing and expenses if you must live elsewhere. These expenses can be a significant drain on your finances.
toy house on cracked concrete to represent earthquake

toy house on cracked concrete to represent earthquake

What Protection Can Earthquake Insurance Provide?
Homeowners insurance may cover fire damage that results from an earthquake, but earthquake insurance is essential for covering other damages. In California, the California Earthquake Authority (CEA) provides most earthquake insurance. The CEA offers earthquake policies for homeowners, mobile home owners, condo unit owners and renters. You can’t buy earthquake insurance directly from the CEA but rather obtain it through an insurance company that is a member of the CEA. This insurer must also have your homeowners insurance.

Earthquake damage can be enormous, and as a result, earthquake insurance can be expensive. Your premium will depend on your location, along with the age and structural composition of your home. Many earthquake policies include a percentage deductible, ranging from 2 to 20 percent of total damages, which means you may still have out-of-pocket costs if there’s an earthquake.

What Precautions Can Limit Earthquake Damage?
Earthquakes can damage foundations and collapse walls, and even mild tremors can destroy furnishings and belongings. You can take precautions to help limit damage from more slight tremors, including:

Secure breakable items
Put latches on china cabinets

Bolt tall furniture such as bookcases and armoires to the studs in the walls
Tie down computers and TVs

If you live in California, it’s a good idea to prepare for an earthquake. Secure your belongings, purchase earthquake insurance and know long you have to file an insurance claim if your home is damaged.

Additional Earthquake Resources
The Jack Lee Fong Insurance Agency blog contains a variety of insurance information for those in California. Find out more about how we can help you with your insurance needs.

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