Earthquake Coverage

Earthquake Awareness:

An earthquake is a sudden and rapid shaking of the earth caused by the breaking and shifting of rock beneath the earth’s surface.  This shaking can sometimes trigger landslides, avalanches, flash floods, fires and tsunamis.  Unlike other natural disasters such as hurricanes, there are no specific seasons for earthquakes. 

Is earthquake coverage included under my homeowner’s and auto  insurance?

This peril is excluded under the standard  homeowner’s policy.  But we in the Golden State have options of buying earthquake insurance in the form of an endorsement to a home policy, limited or  comprehensive single limit blanket coverage.

Cars and other vehicles are covered for earthquake damage under the comprehensive  part of the auto insurance policy.  A deductible applies.

CEA ( California Earthquake Authority ) This is a privately –financed, publicly-managed entity that offers residential earthquake insurance to California homeowners, condominium owners, mobile home owners, and renters.   The CEA began to offer earthquake back December 1996.  It is not a state agency and is not funded through the California state budget. In its founding year it also received capital contributions totaling just over $700 million from its participating insurers.  Currently it has about 750,000 policyholders.  The projected claim paying capacity as of August 2006 was over $8 billion.
Typical coverage features include base limits on the Coverage A ( dwelling ) with a choice of deductible options 15%, 20%, 25%, $5,000 personal property covered and $1500 loss of use.

GEO VERA Comprehensive Policy  This is a very unique insurance product which provides some of the broadest coverage currently available in the residential earthquake market with deductibles as low as 10%.  This policy provides a single limit of coverage for the dwelling, other structure such as patios and garages and personal property.  This coverage also pays for additional living expenses or loss of rent for up to one year in the event that the dwelling is uninhabitable due to damage caused by earthquake.