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California Earthquake Insurance
Schaedler Insurance is proud to offer quality earthquake insurance through the California Earthquake Authority (CEA), the largest provider of earthquake insurance in California. While not all homeowners may have an immediate need for earthquake insurance, those in known high risk areas throughout California are encouraged to carefully evaluate the costs and benefits of coverage. Earthquake insurance offers the following benefits to California homeowners:
Dwelling coverage up to the dwelling amount of your homeowners policy.
Personal property coverage up to $100,000
Loss of use coverage up to $15,000
Deductibles of 10% or 15% of your dwelling amount
Did you know the costliest earthquake ever was the 2011, 8.9 magnitude Japanese quake? Preliminary estimates show property losses ranging from 35-100 billion dollars.
The California Earthquake Authority (CEA) was established in 1996 by the California State Legislature as a result of what was at the time, the costliest earthquake in U.S. history, the 1994, 6.7 magnitude San Fernando Valley quake. Prior to the existence of the CEA, property insurers offered earthquake insurance directly, but most discontinued the practice in light of the catastrophic exposure that providing earthquake insurance presented. As a result, the CEA was formed and is funded by a conglomerate of many of the top home insurance companies in California. By spreading earthquake risk among several stable home insurers, the CEA maintains the financial resources to cover even the costliest quakes that have occurred in recent U.S. history.
Should I Buy California Earthquake Insurance?
Earthquake insurance is almost never covered by a homeowner’s insurance policy. With this in mind, many insured’s mistakenly assume they do not need earthquake insurance because if a quake occurs, their home will be repaired through federal disaster assistance. While federal disaster assistance may or may not be available, it will generally cover up to about $30,000 for those that do qualify. Another common misconception occurs when homeowners assume coverage is not needed because they do not reside near a known fault line. While this may be true to an extent, many fault lines remain unknown because earthquake trending records are a relatively new phenomenon. As an example, the 1994 San Fernando quake occurred on a previously undiscovered fault line.
Earthquake Insurance Rates- How Much Does It Cost?
California earthquake insurance is available for homeowners, mobile homeowners, condominium owners and renters. The premium for each is based upon the individual property being insured, its value, construction type and age as well as its geographical location. CEA rates are the same between all carriers and most rates start at about $50 per year for smaller homes with a 15% deductible.
What Does California Earthquake Insurance Cover?
Earthquake insurance protects your home and its contents from damage caused by an earthquake. Personal property can be covered up to a maximum amount of $100,000 and there is an option to purchase loss of use coverage up to an amount of $15,000. Dwelling coverage for homeowners is available up to the full reconstruction cost of your home as stated on your homeowner’s policy. An important factor a potential earthquake insurance consumer should consider is the deductible they would be responsible for in the event of a quake. CEA policies will have deductibles that are typically much higher than home insurance policies and are available in either 10% or 15% of your dwelling amount. This means with a 10% deductible, assuming your home is insured for $200,000, you would be responsible for the first $20,000 in the event of an earthquake.
Getting A California Earthquake Insurance Quote
Getting a California earthquake insurance quote is simple. Just complete the contact form at the top of this page and a Schaedler Insurance representative will contact you shortly to answer any questions you may have and complete your quote.
