Earthquakes cause millions of dollars of damage to homes each year. Unfortunately, only 25% of California homeowners have earthquake insurance. This is probably due to the high price of insurance and the attitude that it will never happen to them. Most homeowners insurance doesn't cover earthquakes and their damage. A majority of the time you will have to purchase an extended policy for protection against earthquakes. You may also have to purchase extra insurance policies for expensive personal property.
Prices for insurance range from $1.08 to $4.00 for a frame house and $2.00 to $25.64 for a brick house. The average costs are $2.22 and $11.62 respectively. All of these figures are $1 per every $1000 of the total replacement value of the house. Wood frame houses tend to get better rates than brick houses because frame houses stand up better in earthquakes. Also, the newer the house, the better the rate you are likely to get. Quotes are available over the Internet. Also, don't forget about the deductible. The deductible is usually between 5% and 15% of the total replacement cost. The best thing to do is to shop around for a policy and price that is good for you. Your best action is to make sure that you know exactly what your insurance covers so that you won't be caught unprepared and uncovered. Some other things to consider when purchasing your policy are demolition costs: are they covered and, if your house is destroyed, does your policy cover temporary housing costs? What about lost wages? These are all important things to keep in mind when you are shopping around for insurance. Most importantly, find out all of your rights before you sign anything.
For more information, check the Insurance News Network and The Earthquake Home Preparedness Guide.
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