The California Earthquake Authority (CEA) is not the only earthquake insurance provider. While CEA is a well-known organization that offers earthquake insurance in California through its participating carrier partners, there are also private insurance companies, such as GeoVera, that offer stand-alone earthquake coverage. Each carrier has different policy terms, coverage options, and pricing. Researching and comparing options from the available insurers is recommended to find the best earthquake insurance policy that suits your needs and budget.
Purchasing earthquake insurance can be essential in earthquake-prone California to safeguard your home and assets. By understanding the coverage options, assessing the risk, and considering your financial situation, you can make an informed choice that offers protection and peace of mind during seismic events. Also consider consulting independent insurance professionals to find the most suitable earthquake insurance policy for your needs. Preparing for the unexpected can make all the difference when protecting your home and loved ones in the face of natural disasters.
Is it a good idea to buy earthquake insurance in California?
While earthquake insurance is not legally mandated in California, it is highly recommended for homeowners. Standard homeowners insurance policies do not cover earthquake damage, leaving individuals vulnerable to losing one of their largest assets, their home, after a seismic event. Homeowners who lack earthquake insurance may face overwhelming financial strain or even potential foreclosure in the aftermath of a severe earthquake.
The average cost of earthquake insurance varies depending on multiple factors, including the property’s location, value, construction type, and the desired coverage level. Generally, your annual earthquake insurance premium can range from hundreds of dollars up to thousands of dollars. The general rule of thumb is that regions with higher seismic activity often face higher premiums due to the increased risk of damage. Conversely, areas with lower earthquake risks may have more affordable premiums.
What is a good deductible for earthquake insurance?
Earthquake insurance pays the insured for the claim amount minus the amount of the deductible. Rates are calculated based on replacement cost (Coverage A) on your homeowners policy. An option to purchase coverage above Coverage A is available to compensate for demand surge in the event of a catastrophic event. Deductibles can range from 2.5% to 25% of the insured property value.
Selecting an appropriate deductible hinges on your financial position and risk tolerance. Opting for a lower deductible will result in higher premiums. Conversely, if you choose a higher deductible, you will pay a lower premium. If you submit a claim, the amount paid to you will be the loss amount minus the deductible.
Homeowners in earthquake-prone regions should seriously consider affordable earthquake insurance from QuakeInsurance by GeoVera. Earthquake insurance offers coverage tailored to protect your property and belongings damaged as a result of an earthquake, providing peace of mind and financial security during uncertain times.
Two different insurance options available from GeoVera are Flexible Limit and Single Limit earthquake products.
- Flexible Limit offers customizable coverage options for each limit (dwelling, other structures, personal property, etc.) with a range of deductible choices. This option comes at a much more affordable price point and with maximum coverage flexibility.
- The “Cadillac” Single Limit product comes with a combined single limit for all coverages, and one deductible, including demand surge and the option not to rebuild. This is a unique product and is not offered by any other carrier.
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