What You Should Know About Private Earthquake Insurance in California

Earthquakes are a reality for California residents. As such, many homeowners have considered purchasing earthquake insurance to protect their homes, personal belongings, and investments. Surprisingly, private earthquake insurance is often more inexpensive and provides better coverage than government-provided insurance plans. Here is what you should know about private earthquake insurance in California.

What is Private Earthquake Insurance?

Private earthquake insurance policies are designed to help cover the costs related to damages caused by an earthquake. Private companies offer this type of coverage, as opposed to government policies or programs. It usually pays out on claims related to damages done directly by the ground shaking during an earthquake and any additional costs associated with reconstruction or repairs after the quake.

What Does Private Earthquake Insurance Cover?

Private earthquake insurance covers costs associated with repairing or rebuilding your home after an earthquake has damaged it. Typically, this includes damage done directly by the ground shaking and other expenses associated with reconstruction or repairs (for example, debris removal). Remember that earthquake policies do not cover losses from fire or flooding that may occur due to an earthquake, and fire insurance is required to purchase an earthquake insurance policy.

Does Everyone Need Private Earthquake Insurance?

No – not everyone needs private earthquake insurance; however, if you live in an area likely to experience earthquakes (such as California), it should be considered very carefully. Your homeowner’s policy may provide some coverage for earthquakes, but it will likely have limits and exclusions that could leave you exposed without proper protection. These earthquake endorsement coverages from home insurers are called “mini” policies. And in California, many home insurers provide earthquake policies through the CEA (California Earthquake Authority), which has many gaps in coverage compared to private earthquake policies. Additionally, some lenders may require you to carry a certain level of coverage if there is a high risk of earthquakes where you live.

In Conclusion:

Earthquake preparedness can seem daunting, but having the right kind of earthquake insurance policy can give you peace of mind and a knowing that your home or property is properly covered in case of a disaster. For homeowners in California specifically, private earthquake insurance provides valuable protection against potential losses from natural disasters like earthquakes. Understanding what your policy covers and how much coverage you need will help ensure that when disaster strikes, you’re ready. If you have questions about private earthquake insurance for your home in California, contact Calico Insurance Services today! We can help ensure that you’re properly protected so that your home, property, and belongings are safe no matter what happens!