Branch Owner, TWFG Insurance Services, Fremont California and the Greater Bay Area Representing Dozens of Insurance Carriers
Homeowners Insurance does not cover earthquakes. This type of risk is specifically excluded. A homeowner would be required to purchase an additional earthquake policy to cover this type of risk. Depending on where you live the rates can be low to very high (and what is high) if you live in a high risk earthquake zone. The average deductible is 15% of coverage so no small chunk of change. I am in California which is earthquake territory and believe all homeowners should carry earthquake coverage who are in high hazard zones. Average replacement for a home can range from
350k-1 million and so can your loan amount. While your deductible may be 80k (just an average) this is far less then the potential of a total loss which can run 500k. Keep in mind, your home does not have to fall to the ground. If the home even shifts of the foundation the chances are your looking at a total loss. In California all Insurance carriers are required by law to offer you earthquake coverage when you purchase a homeowners insurance policy and make the offer available again at renewal at least every two years afterward. A homeowner then has the option to accept or reject coverage. I often get allot of phone calls right after a shaker. The problem is in many cases moratoriums go up and earthquake coverage is not available for a couple of weeks so if your thinking about getting earthquake insurance, don't think about it. Purchase the coverage and sleep better at night. And I recommend an automatic earthquake gas shut off valve be installed on your gas meter to help prevent gas leaking into your home and a sudden explosion.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Earth movement is an excluded peril in most homeowner’s policies. Some insurance companies will provide earthquake insurance as an option. The companies are required by state law in some states to provide a quote and access to earthquake insurance. The premium for earthquake insurance in a known fault area can equal the premium for the homeowner’s policy.
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350k-1 million and so can your loan amount. While your deductible may be 80k (just an average) this is far less then the potential of a total loss which can run 500k. Keep in mind, your home does not have to fall to the ground. If the home even shifts of the foundation the chances are your looking at a total loss. In California all Insurance carriers are required by law to offer you earthquake coverage when you purchase a homeowners insurance policy and make the offer available again at renewal at least every two years afterward. A homeowner then has the option to accept or reject coverage. I often get allot of phone calls right after a shaker. The problem is in many cases moratoriums go up and earthquake coverage is not available for a couple of weeks so if your thinking about getting earthquake insurance, don't think about it. Purchase the coverage and sleep better at night. And I recommend an automatic earthquake gas shut off valve be installed on your gas meter to help prevent gas leaking into your home and a sudden explosion.