What is earthquake insurance?
Earthquake insurance is a form of homeowners’ insurance which deals with damage caused by earthquakes. In regions where earthquakes are especially common, homeowners may be required to carry earthquake insurance, so that in the event of an earthquake, people rely less on government disaster funds and more on their own insurance policies. As a general rule, earthquake insurance is not a part of standard insurance policies, and it must be purchased separately. Earthquakes can cause a variety of damage to a home, ranging from complete destruction to damage which causes the building to become structurally unsound. Indirect damage caused by neighboring collapses of structures and freeways can also occur, as can more bizarre forms of earthquake damage, like winding up with a car in the living room or a sinkhole in the back yard. Fires and flooding are also common problems in the wake of earthquakes. When homeowners purchase earthquake insurance, they may be protected against both direct dama
Just like it sounds, earthquake insurance insures you against catastrophic loss created by an earthquake. Having lived through the Loma Prieta Earthquake in 1989 (on my wife’s birthday, no less – talk about a downer), I know what kind of damage can be done. And, just like in flood, fire, etc. the damage is complete. Why doesn’t this insurance work like other insurance? Earthquake insurance is different for two reasons. First, it is nearly impossible to predict. Second, loss is nearly catastrophic on a wide basis, but not for everyone. For some, even small earthquakes can cause huge damages. With fires, for example, only rarely is an entire area hurt. With hurricanes and floods, certain areas are more likely to be hit, and the rate of damage can be estimated over time. Thus, the insurance rates for people in known flood plains are higher than for those not in flood areas. Unlike floods, though, people have some control because they can build stronger/better houses, and thus avoid the pr
Earthquake Insurance is a type of property insurance that pays the policy holder in the event of an earthquake that causes damage to the property. Earthquake insurance covers entire building and the contents of the building. Earthquakes are natural disasters which are unpredictable and can cause major damage to your home and personal property, not to mention the loss of human life that can occur in severe earthquakes. California Earthquake Insurance is one way to protect one of your most valuable assets: your home. Earthquake insurance quotes are based on location and the probability of an earthquake. The California Earthquake Authority (CEA) was formed to provide earthquake insurance to residential property owners in California. Homeowners cannot purchase earthquake insurance coverage directly from the CEA. Only licensed CEA members can sell CEA policies. You must have a residential property policy in-force or be purchasing a new residential property policy from a CEA member insurer i
Despite the fact that many people live in areas where earthquakes can happen, very few people actually have earthquake insurance. In California, less than twenty-five percent have earthquake insurance. People who live in places that are especially prone to earthquakes NEED to have one. While not available in most property insurance packages, it can be purchased as an add-on. Many earthquake insurance plans have a high deductible. A deductible is that portion of a claim not covered by the insurance policy which the holder must pay before the claim can be processed. The deductible can be anywhere from five to fifteen percent of the policy amount. As a result of this, minor damages caused by an earthquake translate to very small claims. Policy holders who experience massive damage to their property are the ones who will ‘benefit’ the most. People in California can get insurance through the California Earthquake Authority (CEA), a body sponsored by the state to insure homeowners and renter
