Living in California is great! The weather is pretty mild all year round and there’s always lots of fun things to do. But, like any other state, it has its drawbacks – namely, earthquakes. These natural events take place every day in the Golden State, so it’s a good idea to protect your home with our California earthquake insurance.
If you’re wondering how it’s different from a traditional homeowners policy, here are 8 things you should know:
- Deductibles: earthquake coverage deductibles are based on a percentage of your overall limit on your policy, whereas with homeowners insurance deductibles, you can choose the amount.
- Personal Possessions: with earthquake coverage, personal possessions are only covered to a set dollar amount, but you have the option of increasing your coverage for certain big ticket items, such as computers and big-screen TVs. With a traditional homeowners policy, you’d be able to receive insurance payments to help reimburse you for the loss of items due to fire (these have set limits).
- Exclusions: earthquake coverage normally excludes coverage for landscaping, pools, fences and other structures (e.g., garages), as well as broken china, crystal, etc. With a traditional homeowners policy, there may be exclusions or set limits on certain possessions, such as jewelry, furs, firearms, and silverware. However, these items can be covered by adding on a separate rider to your policy.
- Loss of Use (in the event that your home is unsafe to live in): with earthquake coverage, there are set dollar amounts which can be restricting. A traditional homeowners policy can have certain time periods or it can be a percentage of your dwelling limits.
- Uncovered Losses: damage to your pools, fences, and/or garage fall under this category. These losses may not count towards your deductible, so make sure to read your policy carefully as the the coverage can vary.
- Cost of Coverage: coverage in areas of higher risk are normally more expensive.
- Catastrophic Claims: these claims may also be referred to as “total loss”. These types of claims are a lot more common in the event of a fire. However, if you live in an older home or near the beach during an earthquake, your home could be at a higher risk of incurring catastrophic damage.
- Mitigating Risks: if you decide to get an earthquake policy, you could receive a discount from the California Earthquake Authority (CEA) if you retrofit your older home.
Still not sure about California earthquake insurance? Not a problem! Give us a call today and we’ll be happy to help you find the right coverage for your home!