A Detailed Guide to Earthquake Insurance in California

Per the U.S. Geological Survey (USGS), Southern California has over 2,000 known faults crisscross the state, producing an average of 100 earthquakes per day. California experiences an average of 10,000 earthquakes every year, resulting in loss to life and billions in insured losses. This means that if you live or own property in La Cañada Flintridge or the surrounding areas, you should carry earthquake insurance coverage. Your standard homeowners insurance policy does not cover earhtquake losses. Without earthquake insurance, you will pay out-of-pocket to repair any damage to your home, to replace your personal property, and to live and eat elsewhere after an earthquake. These expenses can be substantial to your family! You will need to purchase a stand-alone earthquake insurance policy, says the Insurance Information Institute (III). With that in mind, here’s a detailed La Cañada Flintridge earthquake insurance guide.

Increasing Fault Lines

Similar to the state of Alaska, the state of California is prone to earthquakes, most of which occur naturally, according to the Michigan Technological University (MTU). While some areas of California may not have experienced earthquakes yet, there is a high risk of future incidences. Increased human activities such as geothermal operations and building construction have led to an increase in the number of fault lines. These changes mean that your home is at risk of earthquakes, and you should purchase the right earthquake insurance.

To Protect Your Property

The damage from an earthquake can come in the form of bursting water and gas pipes, falling fixtures, explosions, landslides, fires, and in worst cases, your home collapsing. Whenever such damages occur, you may have to part with an enormous amount of money to pay for the repairs. This can put much stress on your finances, depending on the extent of the damage. Worse still, the mortgage company expects you to continue repaying the mortgage even when your house collapses due to an earthquake. Thankfully, earthquake insurance coverage protects your property from such damage and may cover all costs related to earthquake damage to help you bounce back quickly.

To Prevent Underinsurance

On average, about two-thirds of American homes are underinsured, per the Insurance Information Institute (III), due to the home insurance exclusions such as floods and earthquakes. Most homeowners don’t purchase separate policies for full coverage. Insuring your home fully will help protect your property, cover repair costs, and enable you to bounce back after an earthquake. Some insurance providers may offer you basic earthquake coverage as an add-on to your homeowners insurance policy at a higher cost, and limited coverage.

Earthquake Insurance Exclusions

An earthquake insurance policy covers damages to your house, personal belongings, and additional living expenses that may result from an earthquake. It doesn’t cover damage from fire, vehicle damage, sinkholes, and floods resulting from earthquakes.

Pros of Earthquake Insurance Coverage

• It protects you from paying for earthquake damage repairs out of pocket
• Premiums are lower in low-risk areas. Additionally, you can lower your earthquake insurance premiums by bundling policies, shopping around, relocating to safer grounds, and making your home more resistant to earthquakes.
• You can get additional living expenses on your earthquake insurance to help you get alternative accommodation during repairs.

Cons of Earthquake Insurance Coverage

• It can be costly in high-risk areas, although you can ask for higher deductible options to lower the rate.
• Earthquake insurance often requires paying a higher deductible, which depends on the cost of rebuilding the house.

Conclusion

If you live or own property in an earthquake-prone area such as La Cañada Flintridge, you need earthquake insurance coverage. For more help with your homeowners or stand-alone earthquake insurance in La Canada, CA, contact the experts at Knight Insurance Services. We are ready to assist you with all your insurance needs today.

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