With the recent earthquake activity in Los Angeles, and Chile, we have received several calls in regards to earthquake insurance. People are curious as to what earthquake coverage would cost, and the coverage it would provide.
For the most part, whether or not you decide to purchase earthquake insurance is a personal decision, as most mortgage lenders do not require (unlike fire insurance) that you carry the coverage.
Basic earthquake coverage (such as that offered by the California Earthquake Authority), will provide coverage on your dwelling, contents, and additional living expenses incurred as a result of damage caused by an earthquake.
Typical earthquake policies have a deductible that is 10% or 15% of the insured amount. Therefore, if you insure your home for $400,000, you will have a deductible of $40,000 (10%) or $60,000 (15%) on your earthquake insurance policy. The deductible is the portion of the loss that you are responsible for, prior to the earthquake coverage paying its share.
The cost of earthquake coverage varies, depending upon the location of your property, the type of construction, the age of the property, and the deductible and coverage limits that you select.
If you would like specific information on the cost of earthquake insurance for a property that you own, please do not hesitate to contact one of the friendly insurance professionals at Hatter, Williams & Purdy Insurance.
Contact us for more information or click here to begin your quote.
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