Earthquake Insurance in California: Protecting Your Home and Financial Security
Determining whether or not to purchase earthquake insurance can be quite overwhelming. After all, you've made a significant investment in your home and want to protect what's likely your largest asset. Earthquake insurance can be an investment of its own, though, and often comes with a high deductible. See below a few considerations that come into play when we help our clients think through whether or not earthquake insurance is right for them.
Is Earthquake Insurance Necessary?
Living in earthquake-prone areas like most parts of California means understanding earthquake insurance benefits is essential. When deciding whether to purchase earthquake insurance, clients will want to consider several factors, such as the age of their home, foundation type, and their own personal risk tolerance. If you own a high-value property or cannot afford repairs out of pocket, earthquake insurance can be a wise investment. Since earthquake insurance isn't usually required by a lender or in any other way, the decision to purchase earthquake insurance can depend mostly on your personal circumstances and overall risk tolerance.
What does it cover?
Earthquake insurance can cover damages and losses to your property, including repairs to the structure of your home and personal belongings such as furniture or electronics. It can also help pay for temporary housing if you can't live at home due to significant property damage from an earthquake. Those who rent may not need to invest in earthquake insurance for the building structure they're living in. However, they can still benefit from having coverage to live elsewhere if needed or replace personal belongings if damaged.
Financial Considerations
When considering earthquake insurance, it's important to consider a couple of financial factors. If you have a mortgage on your property, you will likely still be required to pay your mortgage, even if your home is unlivable or destroyed. This could be a significant financial burden for those who do not want to pay off the remainder of their mortgage for a home that no longer exists. Having earthquake coverage can go a long way toward helping with that. Additionally, earthquake insurance policies often have deductibles ranging from 5% to 25% of the building value, meaning you may need to pay a substantial amount out of pocket before your insurance coverage kicks in. Even with those higher deductibles, earthquake coverage can still provide key protection and peace of mind after a significant event.
How Weiser Can Help
The Weiser Agency collaborates with multiple insurance providers to offer tailored coverage that meets your requirements and preferences. While California Earthquake Authority (CEA) is the most prevalent earthquake insurance carrier, we work with several private insurance companies that may offer more comprehensive or cost-effective options than CEA. Trust your team to be your key thought partners when it comes to evaluating the costs and benefits of earthquake coverage. We’re here to empower you to make informed decisions that align with your property and financial goals.