Do you know what your condominium insurance covers in case of an earthquake? There are some vague areas of understanding, so we thought we would take a moment to explain what you need to know in case of such a scenario.
The Insurance Family Blog
There have been some encouraging developments recently concerning the proliferation of earthquake insurance. The California Earthquake Authority stated that they have taken a step toward diversifying their risk, therefore decreasing any concentrated liability on their part. What this means for the average consumer is that there will be a greater availability of affordable policies. In fact, the CEA said that it will reduce rates by 12% beginning January 1, 2012. This is great news in our current economy, where too many families struggle with day-to-day financial uncertainties.
Most of us purchase a homeowners insurance policy to protect our home in the event of a fire, wind, theft or liability claim. We would be devastated if we lost our home in a fire, especially if we did not have insurance to cover it. But what about earthquakes? In an article in the Los Angeles Times titled “Earthquake experts see the ‘Big One’ getting bigger” they write that a “recent report suggests the southern San Andreas [fault] could rupture from Monterey County to the Salton Sea” and could “end up being bigger than earthquake experts previously thought”. A basic homeowners policy does not cover earthquake damage but coverage can be purchased as an endorsement or a separate policy. Clients often ask us…..Do I need it? Is it affordable? Is it worth purchasing? What does it cover? I hope to answer some of these questions for you.