While earthquakes are more prevalent in the state of California, they can occur in any state. The truth is that an earthquake can occur and cause damage to your property in almost any state.
Earthquake insurance will cover damage to your dwelling and its contents caused by damage from and earthquake such as walls that collapse or valuables that are destroyed inside your home.
Your regular homeowner’s policy does not cover damage caused by earthquakes. You must either purchase an earthquake coverage endorsement or purchase a separate policy for earthquake insurance.
Don’t make the mistake of thinking that you will rely on government disaster assistance to help you recover losses from an earthquake. Government disaster programs, such as FEMA, are designed to take care of immediate needs such as food, clothing, medical assistance and temporary shelter.
If you live in an earthquake prone area, the only way your property and contents will be covered is through Earthquake Insurance.
Do You really need Earthquake Insurance? Only you can make this determination. Many people, especially people who do not live in earthquake prone areas choose not to get this coverage. Earthquake Insurance policies can be quite expensive. Just know that if you do not have earthquake insurance, rebuilding your home and replacing all of your valuables will come out of your own pocket.
The state of California offers earthquake insurance through the California Earthquake Authority (CEA). Individual insurance companies in the state can elect to participate in the CEA. By law, if an insurance company offers homeowner’s insurance in the state of California, it must also offer earthquake insurance.
Mini-policies are also available which only cover your dwelling, excluding items such as patios, pools or other detached structures. This was introduced in 1996 by the California legislature in an effort to keep earthquake premiums affordable for homeowners.