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How to Decide if You Need Earthquake Insurance in California

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Earthquake insurance might not be the first thing that comes to mind when you buy or sell a home in California, but it’s still an important consideration to make when you’re about to become a homeowner or sell your existing home in the Golden State. So how do you know if you need earthquake insurance? Before contacting the best homeowners insurance companies in California, here are some key things to consider.


What is earthquake insurance?

Before you decide whether you need earthquake insurance, consider what it actually is. Your homeowner’s insurance policy doesn’t cover earthquakes, but with earthquake insurance, your insurer will pay to repair damage caused by earthquakes during an insured period. The coverage amount varies based on how much you paid for your home and how much coverage you want. If a catastrophic earthquake hits and causes major structural damage to your home, chances are that repairing or rebuilding it would cost more than what you paid for it originally—and that’s where earthquake insurance comes into play.


How do I know if I need earthquake insurance?

Depending on where you live and what kind of building materials you used when constructing your home, it might be a good idea to add an extra layer of protection against earthquakes with coverage from an earthquake insurance provider. If you live in a region that has a high risk of earthquakes, like Northern California or Los Angeles County, then it may be worth purchasing earthquake insurance.


Where can I purchase earthquake insurance?

If you live in an area of high risk for earthquakes, it’s important to know how much coverage you need and where you can purchase it. Since insurers provide different policies with various benefits and costs, there are plenty of factors homeowners should consider when deciding on a policy. For example, you may want to get your home insured at 100 percent value—meaning that if your house is destroyed in an earthquake, your insurer will pay out enough money to rebuild it from scratch—but most people don’t have that kind of cash lying around. It might be better for you to insure at 70 percent value instead, so that if disaster strikes, you have enough money left over to cover other expenses like temporary housing or renovations.


Why do some homeowners not buy earthquake insurance?

There are several reasons why homeowners might not buy earthquake insurance. Some homeowners may feel that they don’t live close enough to a fault line, so they believe their home won’t be at risk of earthquake damage. Whereas others believe it is too expensive and not a sound investment.


Ultimately, earthquake insurance isn’t a one size fits all product. Depending on where you live and how much it would cost to repair or replace your home, it might be worth looking into. For more information about earthquake insurance or homeowners insurance in general, reach out to a Get-a-Quote professional or the best homeowners insurance companies in California. We look forward to hearing from you!


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