I get asked all the time if an earthquake is covered under a standard homeowners policy, and i would just like take this opportunity in the
wake of the recent hurricanes to write something about the biggest natural disaster we may face here in California, Earthquakes and what
you can do to protect your home and property from them.
First off, NO your standard homeowners policy will not cover any damage caused to your home or belongings by an earthquake. It is
necessary to purchase an additional policy though the state of California (the California Earthquake Authority) to cover damages caused by
a quake. But even with these policies you will not be made 100% whole as in a standard Homeowners policy. That is not the way the
system is set up.
The CEA (California Earthquake Authority) was created to keep a roof over your head. The deductibles are not a numerical amount
as in a standard policy but based on percentage. Depending on what you chose this deductible percentage can go from 5%-25%, the lower the percentage the higher the premium.
Next is the personal property coverage. This coverage covers.. well… your personal property. But it will only cover from $5,000 to $200,000, and the deductible is on the same percentage scale as the home.
Lastly, and this is an extremely important coverage is the Loss Of Use Coverage. This is going to cover your expenses to live in hotels, eating
out, and any other expenses created by you and your family’s displacement. This coverage has a range from $1,500 to $100,000.
So that is the nuts and bolts of a Earthquake policy and as you can see is not nearly as comprehensive as a standard policy but if
the worst was to happen you will be happy you have it. If you want some more details on how these policies work or want to get a
quote give us a call and we will be happy to help in any way we can. Have a great day!