Facts about Earthquakes and Earthquake Insurance
- Rates for Earthquake insurance can vary significantly.
- In earthquake-prone areas, the cost of this insurance is relatively high. In other areas, it is relatively inexpensive.
- In California, Earthquake insurance is issued by an independent organization, the California Earthquake Authority (CEA). CEA policies are available through your many fine companies. Stand alone products also available.
- There is no way to predict exactly when or where an earthquake will occur. Seismologists can say that numerous minor to moderate earthquakes will be felt in the United States in the next year or two and that a major one will occur within the next 25 years.
- It is estimated that a major earthquake in a populated area of the United States could cause as much as $200 billion in losses.
Do You Need Earthquake Insurance?
Here are some questions to ask your self when considering coverage:
- Is my home covered if an earthquake does occur? No, homeowner’s does not, unless endorsed. Neither is landslide or flood.
- Can I afford the cost of rebuilding or repairing my home if damaged as the result of an earthquake?
- What would it cost to replace my personal belongings damaged as a result of an earthquake? Save money and buy coverage for just the structure. Something is better than nothing.