Specifically, you should not expect your policy to cover the following types of damage. What Is Not Covered by California Earthquake Insurance?Īs with any type of insurance policy, earthquake insurance has some limitations. The CEA enables you to buy between $1,500 and $100,000 worth of this coverage and does not allow insurance providers to charge you a deductible. This covers your additional living expenses if an earthquake forces you to evacuate the area or damages your home so severely that it is not safe to live in it while repairs are made. The CEA enables you to purchase between $5,000 and $200,000 worth of contents coverage. If you want coverage for certain fragile items like fine china and crystal glasses, you will need to also buy an endorsement for breakables. This covers the cost to repair or replace your personal belongings like furniture and electronics if they are damaged in an earthquake. This means that if you try to save money by purchasing coverage with a 25% deductible and your dwelling coverage is $400,000, you would be responsible for paying the first $100,000 of any damage to your home. This coverage comes with deductibles ranging from 5% to 25% of your total dwelling coverage. Your policy’s coverage limit will be the same as the amount of dwelling coverage you carry in your homeowners policy. If you are a renter or condo owner, you will not need to buy this portion of the coverage since this will be covered by your landlord or by your homeowners association master policy, respectively. This covers earthquake damage to the structure of your home. Request a quote What Does California Earthquake Insurance Cover?Įarthquake insurance can provide you with three types of protection. At this time, you may want to check with some other insurance companies to see if they can offer you a better price. When you receive an earthquake insurance offer from your homeowners insurance provider, it will include a customized quote. The amount of personal property coverage you are buying.The amount of structural coverage you are buying.Where your house is located and its proximity to a major fault line.Here are some of the factors that affect your cost. This may explain why so few people have it despite the seriousness of this risk.Ī typical policy can cost California homeowners between $800 and $5,000 a year. How Much Does Earthquake Insurance Cost in California?Įarthquake insurance is expensive in California. If you do not respond to the offer within 30 days, you are rejecting it. There are no laws requiring property owners to have earthquake insurance, but California law does require all homeowners insurance providers to offer their policyholders earthquake insurance in writing every two years. This is one reason why, although earthquakes pose a significant risk in the western United States, only 14% of homeowners in this area have coverage. Is Earthquake Insurance Required in California?Īlthough lenders will mandate that you carry homeowners insurance while you still owe on a mortgage, they do not require you to have earthquake insurance. The CEA ensures that all property owners have access to coverage against seismic events through earthquake insurance. The financial hit was so large for insurance companies, that many in this state either significantly restricted or entirely stopped offering coverage against earthquakes.īecause this left homeowners with no way to cover their property, the California state legislature stepped in and created the California Earthquake Authority (CEA). In 1994, the state was hit with a 6.7 magnitude quake, referred to as the Northridge earthquake, which caused around $50 billion in property damage in Los Angeles County’s San Fernando Valley. This is particularly true in California, where the risk of seismic activity is quite high. Most home and renters insurance policies do not cover damage caused by earthquakes. Find an insurance agent near you to learn more. These agents can help you get the coverage you need so that all of your property is suitably covered no matter what kinds of hazards you may face. Local independent agents understand your earthquake risk because they live and work in your community. Scientists have identified more than 15,000 faults in this state and have estimated that there is a greater than 99% change chance of an M6.7 or greater earthquake occurring somewhere in California in the next 30 years.įortunately, you can cover your property with earthquake insurance. Earthquakes pose a serious risk in California.
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