Damage to homes is not covered on most homeowners policiesEarthquake coverage is not included on most homeowners, renters or condominium insurance policies. Your home is insured for earthquake damage only if you’ve added an endorsement to your policy or bought a separate earthquake policy. Show
What is covered?Earthquake coverage pays for damage caused by the shaking and cracking that can damage homes. This type of insurance requires that the earthquake be the direct cause of damage to the property. Other damage indirectly caused by earthquakes may be covered by other insurance. Fire and water damage resulting from burst gas and water pipes—even though the damage may be a result of the earthquake—is generally covered by the standard portion of the homeowners policy. Earthquake damage to vehicles is covered by the comprehensive portion of auto policies. Do I need earthquake coverage?Managing the costs of recovering from an earthquake can be burdensome. Ask yourself the following questions and discuss your concerns with an insurance agent to help you decide if coverage is necessary.
How much does it cost?Earthquake insurance usually features two high deductibles. Rather than a dollar amount, it's a percentage of the cost of rebuilding the home and a separate deductible for the home's contents. The material used to build the home can also determine premiums or whether your home is even insurable. For instance, rates may be cheaper for wood-frame homes, which withstand tremors better than homes made of masonry such as brick and stone. Some insurers will not offer earthquake insurance for masonry homes. Single-story homes may also receive better rates as they tend to sustain less damage from an earthquake. The age of the home can also affect premiums. Additional InformationThe National Association of Insurance Commissioners has published a consumer brochure, “A Consumer’s Guide to Earthquake Insurance”, that can provide you with additional information . A copy can be found at www.naic.org/documents/prod_serv_consumer_guide_earthquake.pdf. The Department of Insurance urges Nebraskans to contact their insurance agents to discuss what coverages are right for them.
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Earthquakes Are a Fact of Life in CaliforniaEarthquakes will happen, but we do not know exactly when. We do know that they can cause a lot of damage to your home and your belongings. You may even have to move out of your home while it is repaired or rebuilt. Homeowners, renters, and condominium insurance policies do not cover damage from natural disasters such as earthquakes, floods, and landslides. Earthquake insurance can help pay for some of your losses. This brochure will tell you about earthquake insurance. Before You Buy Earthquake InsuranceEarthquake insurance covers some of the losses and damage that earthquakes can cause to your home, belongings, and other buildings on your property. If you have a mortgage, you must have homeowners insurance. But you do not have to buy earthquake insurance.
I have homeowners insurance. How can I get earthquake insurance?If you have homeowners insurance in California, your company must offer to sell you earthquake insurance. It must offer this every other year.
Does earthquake insurance cover all damage from earthquakes?No. There are limits on what earthquake insurance pays. The purpose of earthquake insurance is to help put a roof back over your head. It does not replace everything you lost. What if I rent?You can buy earthquake insurance to cover damage to your belongings and to pay for living somewhere else while your rented home is being repaired. What if I have a condo?You can buy earthquake insurance to cover damage to your belongings. It can also pay for living somewhere else while your condo is being repaired. You may also need insurance to help pay for your condo association assessment to repair your building. Talk to your condo association. What if I have a mobile home?You can buy earthquake insurance to cover damage to your home and belongings. It can also pay for living somewhere else while your mobile home is being repaired. The California Earthquake Authority (CEA)The California Earthquake Authority (CEA) provides most earthquake insurance in California. CEA offers earthquake policies, for homeowners, mobilehome owners, condo unit owners and renters. You cannot buy earthquake insurance directly from CEA you buy it directly from insurance companies that are members of CEA. You must have a residential property insurance policy in place in order to get a CEA earthquake policy. You must purchase your CEA policy from the same insurance company that you have your residential policy with-see the list of CEA participating insurers here. Visit the CEA website at www2.earthquakeauthority.com for more information. Back to Top Basic Earthquake InsuranceThe (3) main parts of the basic earthquake coverage offered by the California Earthquake Authority (CEA). Part 1: Your dwelling coverage. This is sometimes referred to as Coverage A and covers your home up to a certain amount, called the limit.
Part 2: Your personal property coverage. This is sometimes referred to as Coverage C and covers things in your home, like furniture, TVs, and computers.
Part 3: Additional living expenses (ALE) or loss of use. This is sometimes referred to as Coverage D and covers temporary and extra costs to live somewhere else while your area is evacuated or your home is repaired.
Homeowners Choice Policies The CEA Homeowners Choice policy offers the option of choosing separate coverage for dwellings and personal property, with different deductibles. Even though you can select separate deductibles for dwelling and personal property, the Homeowners Choice policy will not apply both deductibles for the same earthquake claim. This means that CEA waives the personal property deductible if covered damage to your house exceeds the dwelling deductible. Loss Assessment for Condo Unit OwnersIf you are a condo unit owner, your HOA may have insurance for common areas and the exterior structure of the building; however, it may not cover earthquake damage to those common areas and exterior structures. Additionally, your association may require you and other unit owners to share repair costs or pay part of their policy deductible through an assessment. CEA condo unit policies provide up to $100,000 for your share fo certain assessments if your association imposes an assessment for covered damage caused by an earthquake. Additional CoverageYou may be able to buy building code upgrade coverage (now up to $30,000). CEA homeowners policies include the first $1,500 for emergency repairs with no deductible. Stand-alone or Monoline PoliciesThese are not CEA policies. A few companies offer these policies. They are policies that you can buy without buying homeowners insurance from the same company. How do earthquake insurance premiums vary?Your premium depends on many things, such as the location of your home, the cost to rebuild, type of construction, the coverages selected and the deductible. With CEA insurance, older homes may qualify for a discount of up 20 percent if they have been properly retrofitted. What Earthquake Insurance Does Not CoverAll insurance policies have exclusions. These are the things the policy does not cover. Read your policy to learn about your exclusions. Common Earthquake Insurance ExclusionsCommon exclusions in earthquake insurance policies include: Fire Earthquake insurance usually does not cover anything that your homeowners policy already covers. For example, your homeowners policy covers fire damage, even if an earthquake causes the fire. Therefore, your earthquake policy does not cover fire damage. Land Usually, earthquake insurance does not cover damage to your land, such as sinkholes from erosion or other hidden openings under your land. You may be able to buy limited additional coverage to restore or stabilize land. Vehicles Earthquake insurance does not cover damage to your vehicles. Check your auto insurance policy to find out if it covers that damage. Flood Earthquake insurance does not cover water damage from outside your home, such as sewer or drain back-up, flood, or tsunami. For example, if you live near a lake that floods your home after an earthquake, earthquake insurance will not pay to repair the damage. A flood insurance policy will cover you. Does my homeowners or renters insurance cover any earthquake damage?In general, your homeowners or renters insurance does not protect your house from the damage an earthquake causes, even if the damage is indirect.
Homeowners Insurance Covers Fire Damage California law says that both homeowners and renters insurance must cover fire damage that is caused by or follows an earthquake. This means that the fire damage is covered, whether or not you have earthquake insurance. Back to Top Earthquake RetrofittingRetrofitting is making changes to increase the safety and strength of your home. This can help you save money on insurance and repairs. The cost of earthquake insurance is based on a number of things, such as the way the home is made and the kind of soil under it. The cost is usually higher for:
What if my home is not up to code? Your insurance company must offer you earthquake insurance even if your property does not meet current Building Code and Health and Safety Code rules about bolting foundations and anchoring water heaters. But you may be charged a higher premium and/or deductible. You may get a discount if you retrofit. You may be able to reduce your premium or deductible by retrofitting to make your home safer and stronger. Your insurance company must tell you in writing about these discounts. Retrofitting can:
How can I retrofit? Here are a few ways to retrofit. To learn more about retrofitting, go to www.earthquakecountry.org/step4/.
Building Code Upgrade Coverage You can buy $10,000 additional insurance, called building code upgrade coverage. The coverage pays only for the building code upgrades you need to get a reconstruction permit. How to File a Claim for Earthquake DamageIf you notice damage or just suspect it, report it to your insurance company as soon as possible:
Telephone Tips Take notes on every phone call to your insurance company. Write down:
Do not delay reporting your claim! An insurance company can deny claims that are not reported within one year. The year starts with a date called the inception of the loss. This is when you first:
Your Claims Payment If your claim is larger than your deductible, the insurance company will subtract the deductible from their payment. You do not need to spend anything before you can get payment. Contact California Department of Insurance (CDI).
Should I Buy Earthquake Insurance?The questions below can help you decide whether or not to buy earthquake insurance for you and your family. Can I afford earthquake insurance? Use the Premium Calculator at www.earthquakeauthority.com to estimate your premium. Do I live where earthquakes are common? You may need to do some research about nearby fault lines and the type of soil in your area. Search for fault lines on the U.S. Geological Survey website at https://earthquake.usgs.gov. Do I have a high-risk house? A house is likely to have more damage if it is older, or built of brick or masonry, or has more than one story. Can I afford NOT to have earthquake insurance? After a big earthquake, could you afford to repair or rebuild your home? Can you afford to keep paying your mortgage and taxes while you rebuild? Won't the government help me after a big earthquake? Maybe. The main form of federal disaster relief is the low-interest loan. You must show that you can repay the loan. Grants from the Federal Emergency Management Agency (FEMA) for emergency home repairs and temporary rent assistance are only for those who do not qualify for loans. I can't afford earthquake insurance. Are there other ways I can protect my home? Yes. There are many things you can do to protect your home and reduce the damage caused by earthquakes. Whether you buy earthquake insurance or not, you should do what you can to protect your home, your belongings, and your family.
Do not wait until after the earthquake. Waiting until after an earthquake to buy insurance is not a good idea. It doesn't protect you from the damage you have already had. Also, after an earthquake, insurance companies often do not sell earthquake coverage for a certain period. And when they start to sell it again, the premiums may be higher. Back to Top Common TermsAdditional living expenses (ALE)—Your extra costs when you have to live somewhere else while your area is evacuated or your home is repaired. Agent—A person who is paid by an insurance company to sell their insurance. The CDI licenses agents. Broker—A person who is paid by you to find insurance. The CDI licenses brokers. Claim—Your request to your insurance company to cover specific loss or damage. Claim adjuster—A person who works at your insurance company and is trained to examine your home for damage and loss and to estimate costs. Deductible—The part of your insured damages that you pay, before your insurance pays anything. See pages 4–5. Dwelling limit—The most your insurance will pay (minus the deductible) to repair or rebuild your dwelling. Premium—The yearly cost of buying earthquake insurance. Retrofitting—Changing your home to make it stronger and safer in an earthquake. See pages 8–9. For More InformationCalifornia Earthquake Authority www.earthquakeauthority.com • Learn more about earthquake insurance. • Estimate your premium. • Print free earthquake preparedness handbooks. Earthquake Country www.earthquakecountry.org • Find information on retrofitting. • Learn how to prevent injuries and make a disaster plan. • Learn about risks from fault lines and soil types. National Flood Insurance Program www.floodsmart.gov • Find information on buying flood insurance. Seismic Safety Commission www.seismic.ca.gov • Learn about earthquake safety in California. U.S. Geological Survey https://earthquake.USGS.gov • Search for fault lines. Back to Top Talk to the Department of InsuranceWe are the state agency that regulates the insurance industry. We also work to protect the rights of insurance consumers. Contact the California Department of Insurance (CDI):
Back to Top What does an earthquake policy cover?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.
Is earthquake covered by homeowners insurance?Earthquakes Are a Fact of Life in California
Homeowners, renters, and condominium insurance policies do not cover damage from natural disasters such as earthquakes, floods, and landslides. Earthquake insurance can help pay for some of your losses.
What other peril besides earthquake does the earthquake endorsement cover?Earthquake Endorsement
A minimum deductible of $250 applies to any one loss. The endorsement covers damage caused by earth movement, including earthquakes, landslides, and volcanic eruptions.
Which of the following could be covered by a homeowners policy?A standard policy includes four key types of coverage: dwelling, other structures, personal property and liability. If your home is damaged by a covered event, like strong winds, dwelling coverage can help pay to repair it.
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