Earthquakes are a fact of life in California, and, unfortunately, can cause a lot of damage to your property and belongings. Earthquake insurance can help pay for some of your losses as you try and recover from these natural disasters.

Why You Need Earthquake Insurance

Unlike homeowners insurance, you do not have to buy earthquake insurance. However, with a 99% chance that one or more earthquakes will strike somewhere in the Golden State, it’s crucial California residents ensure they’re covered. Earthquake insurance will help pay for some damages that occurred to your home, in order to help you get a roof back over your head without having to break the bank. 

Standard Earthquake Policies in California

The California Earthquake Authority (CEA) is one of the largest providers of residential earthquake insurance. A publicly managed not-for-profit entity, it partners with insurers to help Californians manage their earthquake-related risks and losses. There are three main parts of the basic coverage offered by the CEA:

• Dwelling coverage. This covers your home up to a certain amount, called the limit. If you rent, you do not need this coverage. Usually, the limit is the same limit on your homeowners insurance. 
• Personal property coverage. This covers things in your home, like furniture, TVs, and computers. The limit starts at $5,000 and you can increase the limit to $200,000.
• Additional living expenses (ALE) or loss of use coverage. This covers temporary and extra costs to live somewhere else while your area is evacuated or your home is repaired. It can cover the temporary rental of a home, apartment, or hotel room; restaurant meals; a temporary telephone line; moving and storage; furniture rental; and laundry. It’s bound to a reasonable time needed to repair the home.

What Earthquake Insurance Does Not Cover

All insurance policies have exclusions and you’ll have to read your policy to understand its specifics. However here are a few common earthquake insurance exclusions: 

Fire – Earthquake insurance usually does not cover anything that your homeowners policy already covers. So, if your homeowners policy covers fire damage, then your earthquake policy does not cover fire damage.

Land – Typically, 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 your 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 backup, flood, or tsunami. You need a flood insurance policy that will cover you.

Do You Need Earthquake Insurance Claim Lawyers?

If you suspect your insurance company has wrongfully denied your earthquake insurance claim, it may be in your best interest to contact a lawyer who can investigate your claim for unlawful mishandling and breach of contract.

Our team at Lari-Joni & Bassell, LLP works tirelessly on behalf of every one of our clients. We don’t quit until you feel satisfied with the claim amount and feel heard by the insurance company.