Living in California, you’ve probably been warned time and time again about earthquake damage. But are you protected in the event that an earthquake damages your home and belongings? Many people think that their homeowners insurance will cover any home damages, but that’s not the case. Earthquake insurance must be purchased separately in order to be protected by this valuable coverage.
You’ve probably already determined the value of your home and belongings for insurance purposes, so you can use that overall value when purchasing earthquake insurance. A good earthquake insurance policy should cover the value of your house, the value of your belongings and the cost of temporary housing following destruction.
Even though this overall value carries over from your home insurance, earthquake insurance works differently. Rather than a set dollar amount for your home insurance deductible, an earthquake insurance deductible is based on a percentage of the policy limits. This percentage typically ranges from two to 15 percent, depending on the seismic activity and risk factors of the area you live in.
Additionally, where you belongings are covered up a percentage of your home’s value with home insurance, they’re covered up to a dollar amount with earthquake insurance. This is because your home’s structure is much more likely to sustain damage during an earthquake than your belongings, especially soft, sturdy items like a couch or bed. If your home is constructed with unreinforced masonry such as brick or stone walls, with “cripple walls” or if it’s on unbolted foundation, it is more likely to undergo damage during a quake.
Be sure to discuss the details of your policy with your independent insurance agent so you know what’s covered and what may be excluded.
Get the coverage you need. Call Hotwire Insurance at (858) 277-2719 for more information on San Diego earthquake insurance.