Earthquake Insurance California: 9 Shocking Truths You Need to Know

Truth 1: California's Earthquake Risk is Staggering

California's proximity to the San Andreas Fault and other seismic zones makes it one of the most earthquake-prone regions in the country:

• 1 in 2 Californians live in an area with a high risk of earthquakes
• Over 10,000 earthquakes occur in California each year

Truth 2: The Big One is Coming

Experts believe that a devastating earthquake, known as "the Big One," is inevitable on the San Andreas Fault:

• 75% probability of a magnitude 6.7 or greater earthquake by 2052
• 31% annual chance of an earthquake greater than magnitude 7.5

Truth 3: Your Homeowner's Insurance Doesn't Cover Earthquakes

Unlike other natural disasters like fire or wind, most homeowner's insurance policies exclude earthquakes:

• 95% of homeowners in California are uninsured against earthquakes

Truth 4: Earthquake Insurance is Affordable

Contrary to popular belief, earthquake insurance is surprisingly affordable:

• Average annual premium in California: $340
• 50% of homeowners could afford earthquake insurance for less than $100 per year

Truth 5: Earthquakes Cause Catastrophic Damage

Even moderate earthquakes can cause significant damage to homes and businesses:

• $5 billion in damage from the 2001 Nisqually earthquake
• $25 billion in damage from the 2014 Napa earthquake

Truth 6: Earthquake Insurance Protects Your Financial Future

Without earthquake insurance, the cost of repairing or rebuilding your home can cripple your finances:

• 90% of businesses that experience a major earthquake fail within two years
• 55% of homeowners who experience a major earthquake lose their homes

Truth 7: Earthquake Insurance Pays for More Than Just Repair

Earthquake insurance covers a wide range of expenses, including:

• Structural damage: Foundation, walls, roof
• Personal belongings: Furniture, electronics, clothing
• Temporary housing: Hotel stays, rental expenses
• Debris removal

Truth 8: Getting Earthquake Insurance is Easy

Obtaining earthquake insurance is a straightforward process:

• Contact your insurance agent
• Fill out an application
• Pay the premium

Truth 9: There are Options to Pay Your Premium

If paying the annual premium upfront is challenging, there are options available:

• Earthquake Bracing Discount: Strengthen your home's foundation to reduce premiums
• Payment Plans: Spread the cost of your premiums over multiple months or years
• State Assistance: Low-income homeowners may qualify for financial assistance

Conclusion

Earthquake insurance is not a luxury but a necessity for homeowners in California. By insuring your home against earthquakes, you protect your financial future and give yourself peace of mind. Contact your insurance agent today to learn more about earthquake insurance and get a quote.

Frequently Asked Questions

Q: How much does earthquake insurance cost in California?
A: The average annual premium in California is $340.

Q: What is covered by earthquake insurance?
A: Earthquake insurance covers structural damage, personal belongings, temporary housing, and debris removal.

Q: How can I get earthquake insurance?
A: Contact your insurance agent to fill out an application and pay the premium.

Q: Are there any discounts available for earthquake insurance?
A: Yes, you may qualify for a discount if you earthquake brace your home.

Additional Resources

• California Department of Insurance Earthquake Insurance
• Federal Emergency Management Agency Earthquake Insurance
• Insurance Information Institute Earthquake Insurance