Since a recent report came out that only 17 percent of Californians have Earthquake Insurance, is it really such a big deal to have this coverage? Some so-called experts have questioned the need for earthquake insurance, but living in southern California makes this type of coverage a necessity for most people, not a luxury.
The simple truth is this: no matter how remote the chances of a major quake destroying your home, if you cannot afford to rebuild with your savings and other assets, you should have earthquake coverage. It is very likely that your regular homeowner’s policy does not include coverage in the event of an earthquake, so you should take steps to secure an earthquake policy as soon as possible.
Why Do I Need Earthquake Insurance?
Quake insurance has changed radically in the past 20 years. After the famous “Northridge tremblor,” which cost insurance companies $12.5 billion in claims, insurers stopped providing automatic coverage in their homeowner’s policies and leading to the California Earthquake Authority, a state-run insurance pool that provided coverage to homeowners.
These policies, however, were not a cure-all for earthquake damage claims. The deductibles were extremely high at 15 percent and the policies covered nothing outside the home such as landscaping, driveways, pools and outbuildings. Contents coverage was capped at $5,000 and relocation expense at $1,500.
Many people rationalize their choice not to purchase earthquake insurance from a private company as a good decision due to the fact that their home has survived many minor quakes or tremblors. However, this is actually a very dangerous attitude to take, similar to saying that because you had a fender bender in a parking lot you will never have a major car crash.
Furthermore, even if your home has been retrofitted with earthquake-proof foundations and other fittings, the chance is still good that you will sustain enough damage to make it impossible for you to pay for it yourself. Some homeowners are counting on FEMA or will even turn the house back over to the bank if an earthquake occurs, but these are poor solutions at best.
The fact is that you need good coverage to protect yourself and your family. Whether you need commercial insurance in San Diego, condo insurance in California or earthquake insurance in California, EIS Insurance is here to help. Contact us today to discuss your options.
The post Earthquake Insurance : Why Is It Important appeared first on .
This post first appeared on Blogs -EIS Financial And Insurance ServicesFinanci, please read the originial post: here