For instance, before your building can be insured against earthquakes, you may have to have the structure bolted to its foundation. Your business property may have to undergo an inspection and upgrades before you can qualify for earthquake insurance. Earthquake insurance policies often have high deductibles, ranging from 2 percent to 20 percent of the insured value of your building, depending on its location, age and condition. Coverage begins when damage has exceeded your policy’s deductible. Depending on the policy, lost business income caused by an earthquake may also be covered. Your business earthquake policy will generally cover damage to your building and to your business property such as your inventory. In recent years, fiber-optic seismometers have become a revolutionary development in measuring earthquakes. Commercial property insurance covers some natural events, such as wind damage, but you must purchase separate coverage if you want protection against earthquakes.Ĭommentary Opinion: How fiber-optic seismometers are revolutionizing the way earthquakes are measured Note that cars and other vehicles are covered for earthquake damage under the optional comprehensive part of an auto insurance policy.Įarthquakes can be highly destructive, so you should also consider earthquake coverage for your commercial business. For example, a home with an insured value of $300,000, and a 5 percent deductible, would have its earthquake insurance coverage take effect only after the first $15,000 of damage had been absorbed by the homeowner. Deductibles for earthquake insurance policies are higher than those in standard homeowners or renters insurance policies, with earthquake policy deductibles usually from 5 percent to 15 percent of the policy limit. Rates for earthquake insurance can vary significantly, from inexpensive in lower risk areas to a relatively high cost in places that are more prone to earthquakes. Is your home built to withstand an earthquake? Some questions to determine whether you need earthquake insurance:Ĭan you afford the cost of rebuilding or repairing your home if it is damaged by a quake?Ĭan you replace your personal belongings if they are damaged or destroyed by a quake?Ĭan you afford to pay for temporary housing and other expenses if earth movement-caused structural damage makes your home uninhabitable? If you are thinking about buying a home in an earthquake-prone location, assess the cost of earthquake insurance coverage to understand the home’s true risks and the cost of insuring it. CEA offers premium discounts to policyholders who have retrofitted, or strengthened, their older homes to help them better withstand shaking.ĭetermining if you need earthquake insurance is important. Many of them are participating insurers of the California Earthquake Authority (CEA), but there are other non-CEA insurers that also provide great options to help protect you and your family from financial loss. There are a number of earthquake insurance providers in California. You can also get coverage for additional living expenses and personal property, and some companies even cover damaged swimming pools or masonry veneer. ![]() People should consider getting a policy that, at a minimum, covers the structure of the home, building code upgrades and emergency repairs. In California, the risk for earthquake damage is significant. To get more insights and to find out whether a stand-alone earthquake insurance policy is available in your area, contact your insurance professional or Google “ California Department of Insurance: Insurers Offering Earthquake Coverage.” ![]() Earthquake insurance coverage is available in the form of a separate policy or an endorsement to an existing homeowners or renters insurance policy.
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