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Is earthquake insurance necessary?
Earthquake insurance isn’t mandatory, but depending on where you live, your home might be at risk of suffering irreparable damage. California law requires homeowners insurance companies to offer add-on earthquake coverage, but there’s no law forcing anyone to actually purchase a policy.
How much does it cost to add earthquake insurance?
Premiums for earthquake insurance range from $800 to $5,000 annually, and deductibles are typically 15 percent of the total value of the home. California houses aren’t cheap –- the current median sale price is just under $400,000, and is higher in many of the counties most at risk.
Why do insurance companies not offer earthquake insurance?
Insurers do not want to sell earthquake policies but do want to sell lucrative homeowners’ and auto policies. So they offer earthquake insurance to homeowners to keep them as customers. Insurers are also concerned that if they refuse to sell earthquake insurance, state regulators may force them to.
Is there a waiting period for earthquake insurance?
There is 15-day waiting period for coverage after a seismic event but no moratorium on writing earthquake insurance coverage, regulators say. Without specific earthquake coverage, you are responsible for all costs to repair, rebuild or replace your home and personal property.”
What happens if your house is destroyed by an earthquake?
After an earthquake, you still have your mortgage even if you no longer have your home. Earthquake insurance usually pays for damage to the structure, temporary living expenses and personal property replacement. But you may still have hardship because of the deductible, and because payment might not come immediately.
Are earthquakes covered by homeowners insurance?
Your homeowners insurance typically protects your dwelling and other structures and contents from damages due to fire, smoke, lightning, hail, theft and other exposures as described in your policy. Earthquake damage, however, is typically excluded from homeowners insurance policies.
What is covered under earthquake insurance?
Earthquake insurance typically only covers direct damage to the property resulting from the shaking of an earthquake. Indirect damage, such as fire and water damage from burst gas and water pipes, is covered under a homeowners policy.
Are earthquakes covered by home insurance?
Does home insurance cover earthquakes?
Earthquakes and coverage Homeowners and renters insurance does not cover earthquake damage. A standard policy will, however, generally cover losses from fire following a quake and, if such a fire makes your home unlivable, cover the additional living expenses incurred while you live elsewhere during repairs.
How can you tell if a house is earthquake safe?
How can I determine my earthquake risk? A. Interactive hazard maps are available from the California Governor’s Office of Emergency Services (CalOES) at its My Hazards Awareness Map website on the “Earthquake Risk” tab. Then enter your address into the map search field at the top of the page.
Can a homeowners insurance policy cover an earthquake?
For example, your homeowners policy covers fire damage, even if an earthquake causes the fire. Therefore, your earthquake policy does not cover fire damage. Usually, earthquake insurance does not cover damage to your land, such as sinkholes from erosion or other hidden openings under your land.
What happens to your home if there is an earthquake?
Some homeowners insurance policies might cover damages caused by a fire following an earthquake, which is a common consequence of an earthquake. What does earthquake insurance cover? If an earthquake strikes, your policy will cover: 1.
What are the pros and cons of earthquake insurance?
Pros of Earthquake Insurance. If your home is damaged by an earthquake, you will be covered for repairs or reconstruction rather than losing everything, or having to borrow (more) money to make your home livable.
What happens to your car if there is an earthquake?
If an earthquake causes damage to your vehicle, a comprehensive car insurance policy would pay for repairs. The bottom line: no, earthquake insurance doesn’t cover all damage caused by an earthquake. In many cases, other types of insurance would kick in to cover repairs or replacement of damaged property.