Earthquake Insurance - The Rock and Roll Reality
If you live in Southern California, Los Angeles area or if you just watch TV you either experienced or heard about the latest 5.4 level earthquake that hit Chino Hills and surrounding areas.
Living with quakers and shakers in California is a fairly normal occurrence for tremors of a minor nature. But when the larger ones strike, it’s always a shock.
Since the Northridge Earthquake of 1994 earthquake insurance has been highly desired but not as easily attained. Shortly after the big one struck in ‘94, insurance companies have been reluctant to carry coverage for home owners even if they had had it before.
Insurance companies, in order not to offer earthquake insurance which is mandatory under California law, decided to forgo writing “all” home owner coverage in the state.
The State government finally stepped in and developed smaller policies that could be sold by any insurer to comply with the mandatory offer law. The limitations of the policy are such that it will only cover structural damage along with a 15% deductible.
Personal property losses and “loss of use” have restrictions so it’s important to ”read the fine print”.
Aside from the challenge of finding a carrier that will give you earthquake insurance the real trick comes with choosing the company and policy that will fit your needs and protect your biggest asset, your home.
Earthquake Insurance is necessary even if you don’t think the Big One will happen in your lifetime. Even smaller quakes cause a lot of damage and you can’t expect that FEMA, the SBA, private charities or family and friends will be able to bail you out.
Remember Katrina? FEMA is still digging it’s way out of that one.
The next step, just as you would for any other type of insurance coverage, like your car, health, home or rental property, check out the solvency of the company. Once that has been established go over the features and prices of the policy offered.
Before signing what looks like a good policy, determine the amount of equity you have in your home, something particularly of interest in this down market. Equity alone isn’t enough as the age and construction style and foundation soundness needs to be assessed and figured into what kind of coverage fits your home.
Having earthquake insurance shouldn’t be the end game to protecting your house. It’s good idea to take proper precautions in and around your home.
Securing appliances like water heaters, window air conditioners and any other items that could easily fall and cause damage can save you money and heartache.
Your local hardware store carries all manner of safety equipment that can help secure your home and give you a fighting chance against the next time the earth moves.