Should You Have Earthquake Insurance?

California Earthquake Authority shows earthquake damage

Owners of Palos Verdes real estate wonder if they should have earthquake insurance.  Most of my clients have researched the pros and cons of the only earthquake insurance offered in California by the California Earthquake Authority (as I have myself).  A huge factor is the price of the policy versus the high deductibility for damage.

Yesterday, Kathy M. Kristof, of the Los Angeles Times wrote an article, “Quake coverage worth the cost?” which included a link to an online calculator from the California Earthquake Authority (click here to view).  This helpful tool gives you an estimate of your policy premium after you enter some specific information about your property.  The premium for my home would be $1,033 per year with a 15% deductible but I don’t know if the Personal Property and Loss of Use are actual payouts or if the deductible must be met first.  And there is a long list of excluded items such as detached structures including garages, pools & spas, fences, landscaping, irrigation systems, patios, decks, walkways, driveways, stained glass, chandeliers, etc.  There is also a long list of exclusions for personal property.  This can be found under “Insurance Policy Information”.

According to Glenn Pomeroy, chief executive of the Californai Earthquake Authority, in the LA Times article “The purpose of most earthquake coverge is to get a roof over your head…It isn’t aimed at getting your home back to the same shape it was in before the disaster.”  Click here to read LA Times article.

Photo courtesy of California Earthquake Authority

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