Earthquake insurance is a worthwhile consideration for California homeowners. While standard homeowners insurance policies typically cover risks like fire, theft and wind damage, they usually do not include earthquake damage.
Given California’s position along the Pacific Ring of Fire, the decision to purchase earthquake insurance is one to take seriously.
Are earthquakes common in California?
California experiences more than 500 earthquakes per year that are detectable by humans. There are also hundreds more minor earthquakes that are not likely to cause damage, but the risk of a major earthquake remains high. A significant earthquake can severely damage homes, leaving residents with substantial repair costs. Without earthquake insurance, homeowners must pay out-of-pocket for these repairs.
What does earthquake insurance cover?
Earthquake insurance typically covers the cost of repairs to your home, the replacement of personal belongings and living expenses if you need to stay elsewhere while your home undergoes repairs. However, it is important to note that earthquake insurance often comes with a high deductible. This means that homeowners may need to pay a significant amount before coverage kicks in. Despite this, the financial protection provided by earthquake insurance can be invaluable in the event of a major quake.
Should you purchase earthquake insurance?
The decision to purchase earthquake insurance depends on several factors. Homeowners should consider the location of their property. Those who live near fault lines or in areas with a history of seismic activity face a higher risk of earthquake damage. The age and construction of the home are also a factor.
While earthquake insurance is not mandatory, it provides notable protection for homeowners in California. Given the state’s high risk of earthquakes, homeowners should carefully consider whether they can afford the potential costs of earthquake damage without this coverage.
