Did you know that earthquakes are the most costly natural disaster to recover from? Even though large scale quakes are relatively rare, when they strike they can be extremely destructive.
The recent 5.1 earthquake that hit La Habra last month served as a jarring reminder of just how real these risks can be for Orange County residents. Rockslides, evacuations, power outages, broken water mains, and structural damage have left many displaced from their homes. With such an expensive and real threat rumbling in your own backyard, earthquake insurance may be one of the smartest financial precautions available to Southern California homeowners.
- 90% of Americans live in seismically active areas.
- Since 1900, earthquakes have occurred in 39 out of 50 states.
- The East coast faces a 40 to 60% chance of a major quake in the next 20 years (Earthquake Education Center, Charleston Southern University).
- The Midwest faces a 40 to 63% chance of a major quake in the next 15 years (Insurance Information Institute).
- Unknown fault lines exist all over and may not be discovered until after a devastating earthquake hits the region.
You may not realize it, but it’s likely that your homeowner’s insurance policy does not include earthquake coverage! Earthquake insurance is usually a supplemental homeowner’s policy or a separate policy altogether.
An earthquake policy typically covers damage to your home and belongings up to a specified amount. Ideally, a homeowner will want to have enough coverage to pay the cost of rebuilding their home due to structural damage or collapse as well as replacing their valued belongings.
How Much Does it Cost?
Several factors play into your premium amount. Your location as well as the age and structural composition of your home are important parts of this equation. Also, most earthquake policies carry deductibles ranging from 2 to 20%. To many, earthquake insurance may seem like an expensive precautionary measure. However, when weighed against the epic out-of-pocket costs involved with a catastrophic quake, carrying an earthquake policy could your only lifeline to survive the financial aftermath.
How can earthquake insurance can work for you? The experts at ERM Insurance in Irvine, California are standing by to answer your questions.
Call (949) 222-0444 for more information.