Earthquake Insurance in California

We all love the weather, ocean, beaches and beautiful cities in California but we don’t like the Earthquakes in California! There is a high chance that the big earthquake can hit our state any time. Each year California gets about 10000 earthquakes. Of course, most of them are small but once in a while we feel the shake that makes our hearts beat faster. Especially, when you remember at that same moment that the Earthquake Insurance is not active or just you never purchased it from the beginning. As California is an earthquake zone, having a proper earthquake insurance policy is crucial.

Why is it Important to have an Earthquake Insurance ?    

Your Homeowners Insurance policy will not cover earthquake damages. You need to purchase it separately as most Homeowners, Condominium, and Renters insurance policies do not cover earthquake damage. Earthquake Insurance in California will cost you approximately the same price as you paid for your Homeowners Insurance policy. Earthquake Insurance in California covers some of the losses and damage that earthquakes can cause to your home, belongings, and other buildings on your property. If you have a mortgage, you must have homeowners insurance.

Does earthquake insurance cover all damage from earthquakes?

Similar to all other insurance policies, earthquake insurance also has limits that it can cover. You purchase earthquake insurance in order to be able to put a roof back over your head when the time comes. It will not replace every  damaged item lost during the earthquake.

What if I rent?

You can buy earthquake insurance to cover damage to your belongings. Also, you will have coverage for living somewhere else while your rented home is ready for living again.

What if I have a condo?

You can buy earthquake insurance to cover damage to your belongings. It can also pay for living somewhere else. You may also need insurance to help pay for your condo association assessment to repair your building.

What if I have a mobile home?

You can buy earthquake insurance to cover damage to your home and belongings. It can also pay for living somewhere else while your mobile home is being repaired.

Earthquake Insurance Coverages

There are 3 main parts that California Earthquake Authority (CEA) covers.

 

Your dwelling coverage.

• The limit on your earthquake insurance is the same as the limit on your homeowners insurance (dwelling coverage).
• CEA offers deductibles of 5%, 10%, 15%, 20%, and 25%. You do not have to pay your CEA deductible up front to receive a claim check, it is simply the amount deducted from your total covered losses.

Your personal property coverage.

• The limit starts at $5,000 and you can increase the limit to $200,000.
• Things like china and crystal are covered if you purchase optional breakables coverage.

Additional living expenses (ALE) or loss of use.

• It can cover temporary rental of a home, apartment, or hotel room; restaurant meals; a temporary telephone line; moving and storage; furniture rental; and laundry.
• It is bound to a reasonable time needed to repair the home, or for you to move to another permanent home.
• The limit range from $1,500 to $100,000.
• This coverage never has a deductible under CEA