Just like the risk of flooding, the risk of property loss caused by earthquakes is real–so real that standard homeowners and business property insurance policies DO NOT cover damage and loss caused by earthquakes. Property owners would have to set up separate earthquake insurance in order to secure insurance protection for damage and loss caused by earthquakes.
Be aware when you set up earthquake insurance that earthquake policies allow you the chance to select the coverage limits for each line of coverage on such a policy separately for:
- Your dwelling
- Your personal property (or “contents”)
- Your “loss of use” (to pay for a place to stay when you home is uninhabitable after a quake)
- Building Code Upgrade
Other coverage lines are also available on other specialty earthquake policies to cover loss to swimming pools and other structures. Be sure to ask!
The way earthquake policies are set up means you will only have to pay for the coverage you want, but you’ll want to be aware of what you are buying and its limitations, especially the deductible. Also, beware not just to accept the “standard offer of earthquake insurance” that your homeowners insurance company is required to send you at least once every other year: there are likely options we can find that will better suit your needs and budget if you just take a quick moment to call us at 562-498-6701.
California property owners can check the risk of earthquakes at their home’s location on this website. But even then, understand that earthquakes can strike at any time in any place–so call our office today!