Earthquake Insurance
Updated On: October 7, 2011
Earthquake Insurance if you live in Southern California is probably one of the most important decisions for a home owner to make. However, even if you have Earthquake Insurance are you guaranteed that you will be able to rebuild or fix your home? In the Northridge Earthquake because so many claims went in at once the Insurance companies were unable to pay out all at once and two to three years later people were still waiting for their money. The good news is that fortunately there isn’t that kind of Earthquake often but it is something to keep in mind. Earthquake Insurance can be a big piece of mind. But you should thoroughly check out your carrier to see what their background is when it comes to a big payout. Also with Earthquake Insurance make sure you have enough insurance to cover the damage. When getting quotes for repairs contractors quotes can vary from $20,000 to $250,000 in repairs. With Earthquake Insurance at least you have some protection from greedy contactors. Don’t forget to see if your policy for Earthquake Insurance also covers you for temporary housing in case you need to vacate your home. Will it pay for emergency hotels or a short term lease while your home is being repaired or rebuilt? Will it pay for boarding your pets? How quickly will your carrier pay out on a claim? There are a lot of things to consider when choosing Earthquake Insurance ,because not only are you trying to protect the property you also need to protect the contents, which a lot of can be destroyed in an Earthquake, due to water damage, smoke damage, or just smashed from debris and rubble. Anyone that has ever experienced an earthquake knows the mess that can occur even in a moderately small quake.
Earthquake Insurance is a must, if the quake is big enough to do considerable damage, but not big enough to be declared a disaster and there is no FEMA relief available and you cannot get an SBA Loan without Earthquake Insurance you have a huge problem.
Homeowners that own Condo’s or Townhome’s have different problems to Single Family Homes. When getting Earthquake Insurance what exactly does the policy cover? Because in condo and townhome complexes there a common walkways and areas that are not covered by the policy. So does the Home Owners Association have good coverage or enough reserves to pay for these areas in the event of an earthquake? After all what’s the point of rebuilding your unit if the rest of the complex is in rubble and will not be rebuilt for some time to come.
Earthquake Insurance is really something to consider very seriously when choosing a carrier. Find out as much as you can and make sure you really are covered as much as you think you are, whether it is for contents, rebuilding or whether you are part of a Condo or townhome complex. Don’t take chances Earthquake Insurance could make a big difference for you and your family.