Possibly the most important thing to know about earthquake insurance is this: A basic homeowner’s policy does not cover earthquake damage. Even if you don't live in an area where earthquakes are common, it's possible you might need earthquake insurance.
Earthquakes have occurred in 39 states since 1900, and about 90% of Americans live in areas considered seismically active. Yet only a small percentage of people purchase earthquake insurance.
Even in California, where earthquake fears are a daily fact of life, only about 12 percent of homeowners have earthquake insurance, according to the California Earthquake Authority (CEA), down from 30 percent in 1996 when the state legislature created the CEA. Each year, more homeowners get rid of earthquake coverage than buy it because, according to consumer groups, they believe the policies cost too much and cover too little.To make an educated decision about insuring your home against the risk of an earthquake, you'll need to get a few quotes from competing insurers. Read UP's buying tips to get a sense of the dollar amounts and types of coverage you want, write them down on a piece of paper, then call around or use the Internet to get "apples to apples" premium quotes from competing insurance companies. The basic categories are: Dwelling, Contents, Garages, Fences, Pools, Outbuildings, Building Code Compliance, and Temporary/Additional Living Expenses.
Your options are very limited so it's much easier than shopping for auto or homeowners coverage. There are only a few companies selling earthquake insurance these days, and some are very selective about who and what they will insure.
Once you've read UP's buying tips and articles and gotten the premium quotes, you can make the right decision for you, your family and your property. Your buying options vary according to:
your property is located
that is currently insuring the property for fire, etc.
Whether you own a condominium, mobile home, or are a renter.
Can you afford not to have earthquake insurance? A generally accepted rule of thumb is that you should not risk more than 10 percent of your liquid assets. A large earthquake could mean:
10 to 100 percent of your home’s structure could be damaged or destroyed
Up to 20 percent of your belongings could be damaged
$3,000 a month for temporary rent and relocation costs
For more information on buying earthquake insurance, read our publication entitled, Earthquake Insurance Shopping Resources and Earthquake Insurance for Renters
Call now to get an earthquake quote 1-800-397-3748