Living in California has its perks, like sunshine, beaches, and beautiful homes. But it also comes with seismic risks. Earthquakes can strike without warning, and while they may not happen often, when they do, the damage can be devastating.
Property Fling often talks to homeowners who wonder: Should I really get earthquake insurance? What does it even cover?
Here’s what you need to know.
What Is Earthquake Insurance?
Earthquake insurance is separate from your regular homeowners policy. Most standard policies do not cover earthquake damage. If your home suffers structural damage, foundation cracking, or loss of personal belongings due to an earthquake, you could be left paying out of pocket unless you have a separate earthquake policy.
What Does It Cover?
A typical earthquake policy covers:
- Dwelling coverage, for repairs to the structure of your home
- Personal property coverage, for damage to your belongings
- Loss of use, to help with temporary housing if your home is unlivable
However, deductibles are usually higher than standard insurance, ranging from 10% to 20% of your home’s value.
How Much Does It Cost?
Premiums vary based on your location, home type, age, and construction. In California, you can expect to pay between $800 to $3,000+ per year for single-family homes. Older homes and those not retrofitted can cost significantly more.
A few popular providers to consider:
- California Earthquake Authority (CEA), available through many major insurance companies
- GeoVera, known for flexible policy options
- Palomar, often more affordable for newer homes
It’s worth getting a few quotes and comparing deductibles and coverage options to make an informed decision.
What Happens If Your Property Is Affected?
After an earthquake, the claims process can be slow and emotional, especially if your neighborhood is hit hard. Expect:
- An inspection and damage assessment
- A review of your deductible, which may be substantial
- Delays due to high claim volume
Having insurance doesn’t make recovery easy, but it can prevent financial ruin and help get your life back on track sooner.
So, Should You Get It?
If you live in a high-risk area, especially Southern California, earthquake insurance is something to consider seriously. Think of it like flood insurance in a storm-prone region. It’s not always needed, but it can be invaluable when disaster hits.
