California Earthquake Insurance

With the recent earthquakes in Haiti and Chile, many of my clients have called and asked if their Homeowner’s policy covers Earthquake coverage.  Many people may not realize that most Homeowners, as well as Renter’s and Condo policies, do not include earthquake coverage and it must be purchased separately, either as an endorsement to the Homeowner’s policy or as a separate policy altogether.

California Earthquake Insurance rates are based on several factors including location of the home and the probability of an earthquake in that area, your home’s age, type of construction and its value.  The deductible on an earthquake policy is different than the fixed deductible on most property policies.  The deductible is calculated as a percent of the value of coverage, rather than a flat amount and are usually 10% or 15%.

Earthquake Insurance policies will usually cover the cost to replace or repair your damaged property, but there are several other things to consider if you are purchasing a policy.

-Does the policy cover only the dwelling?
-Are other structures, such as garages, also included?
-Will your policy pay for personal property and the contents of your home?
-Will the policy pay for additional living expenses if your home is severely damaged or destroyed?
-Are there any exclusions or limitations to coverage?

Call me if you any more questions.