Do most Californians have earthquake insurance?
Only 13% of California homeowners have earthquake insurance. In the wake of the earthquakes that struck last week, NPR’s Audie Cornish speaks with California Earthquake Authority CEO Glenn Pomeroy. AUDIE CORNISH, HOST: … The entire state is vulnerable to earthquakes, but just 13% of homeowners have earthquake insurance.
What happens if you have no earthquake insurance?
If an earthquake damages your home and you don’t have earthquake insurance, you’ll most likely end up paying out of pocket to make any necessary repairs. If your property is at high risk for earthquakes, the seller may disclose this in a Natural Hazard Report.
How common is earthquake insurance in California?
About 20% have earthquake insurance, according to the earthquake authority’s estimates. That’s about twice the state average. … “Living in California means living with the risk that an earthquake may strike at any moment,” said state Insurance Commissioner Ricardo Lara.
How do you know if you need earthquake insurance?
Do I need earthquake insurance? Earthquake insurance isn’t required by law, and most mortgage lenders won’t require it either, but if you live in an area that’s prone to seismic activity, earthquake coverage may be a good idea.
Is earthquake damage covered by insurance?
Earthquakes and coverage
Homeowners and renters insurance does not cover earthquake damage. A standard policy will, however, generally cover losses from fire following a quake and, if such a fire makes your home unlivable, cover the additional living expenses incurred while you live elsewhere during repairs.
What happens if your house is destroyed by an earthquake?
Earthquake insurance usually pays for damage to the structure, temporary living expenses and personal property replacement. But you may still have hardship because of the deductible, and because payment might not come immediately. … So if an earthquake destroys your home, you still have a mortgage obligation.
Does FEMA pay for earthquake damage?
Traditional earthquake insurance covers damage caused by an earthquake by insuring “pure loss.” That means they will assess the value of the items lost and reimburse you for that specific amount – this amount will be different for different people.
Why are earthquake deductibles so high?
Earthquake deductibles are high because the damage from them tends to be catastrophic, making them a higher risk for insurers. To cover costs, they need to make deductibles high.
Do I really need earthquake insurance?
While earthquake insurance isn’t mandatory, you should get earthquake insurance if your home is in an area that is known to be at risk of earthquakes. … If you don’t have enough savings to cover the costs that could result from an earthquake, consider getting earthquake insurance.
Is earthquake insurance tax deductible?
Earthquake insurance generally comes with a deductible of 15% of the home’s value, according to John Rundle, a professor of physics at the University of California, Davis.
Does earthquake endorsement cover other structures?
Earthquake insurance covers repairs needed because of earthquake damage to your dwelling and may cover other structures not attached to your house, like a garage. … Earthquake insurance covers the cost to remove debris. It also pays for extra living expenses you may have while your home is being rebuilt or repaired.
How much more is earthquake insurance?
Also keep in mind that earthquake insurance usually has a higher deductible than other kinds of insurance—generally ranging from 2% to 20% of the damage. On a $400,000 home, your deductible would be $8,000 at 2%, but this rises to a whopping $80,000 at 20%.
Why does California have so many earthquakes?
The earthquakes of California are caused by the movement of huge blocks of the earth’s crust- the Pacific and North American plates. … Over time, these faults produce about half of the significant earthquakes of our region, as well as many minor earthquakes.
Is California Earthquake Authority a government entity?
In 1996, the California Legislature went one step further and created the California Earthquake Authority (CEA)—a not-for-profit, publicly managed, privately funded entity.