Residents can find and purchase policies through the California Earthquake Authority (CEA). This website provides information for the reader to choose to request more information about life insurance, including how to apply for a quote. This is because, after an earthquake occurs, insurance companies wait around 30 to 60 days to offer insurance once more. If you live in other states, your agent can discuss earthquake insurance options so you can select the coverage that you want. What even the most prepared families often don’t realize is that earthquake insurance isn’t automatically covered by a homeowners insurance policy. USAA. That’s because many insurance companies temporarily stop selling these policies following a severe quake — usually for a couple of months. Homeowners can fill out an online application and receive a live quote to buy instantly if desired! If earthquake insurance is not available as an endorsement, you may be able to buy it from another company as a stand-alone policy. Setting a 30 to 60-day waiting period protects insurance providers from consumers who want to take advantage of these situations. Farmers has a few discounts available, including multiple policy, non-smoking household, security system, and fire alarm discounts. Nationwide goes further, not only capping personal property insurance at $200,000 but also offering the same coverage amounts for loss of use. Having the option to change your deductible is great since high deductibles translate to cheaper premiums and vice versa. Renters earthquake insurance can help you cover the costs associated with returning to normal life after an earthquake as a renter. But what makes Allstate stand out is the wide variety of discounts you can get through their homeowners insurance, which can help you save on your earthquake insurance if you include it as an add-on. Like earthquake insurance, both of these are optional add-ons to homeowners insurance and are suitable for those seeking total coverage. The reason behind this is that, just like with a health insurance’s waiting period, this prevents customers from issuing false insurance claims. Earthquake insurance is coverage for damages caused by an earthquake. Finally, if you live anywhere near a fracking zone—even if you’re in a state that’s not naturally prone to seismic activity—you could experience an increased number of induced earthquakes, and you should also consider getting insurance. This is the amount of money you need to pay out of pocket before your insurance kicks in. Before You Buy Earthquake Insurance. For example, in California, one of the states with the highest history of earthquakes, premiums range from $800 to $5,000 annually. Homeowners, condo owners, mobile home owners and renters often buy Earthquake Insurance to cover damages that may occur to personal belongings and for living expenses during repairs and rebuilding. Earthquake insurance can help pay for some of your losses. In a high-risk region, annual premiums can fall into the $500 to $1,000 range. What about states that have lower chances of being struck by an earthquake? “Insurance Blog By Chris" is a trademark of Ad Practitioners LLC. For Allstate’s earthquake insurance, limits fall within the $100,000 to $500,000 range. Buy earthquake insurance today. In many cases, masonry veneer isn’t even covered. Riverside is a little better, with 9% of homes having earthquake insurance. The earliest you could get earthquake insurance is September. Seismic activity can wreak havoc on a home, but earthquake insurance will protect you from the costs of fixing things up. Mercury Insurance. If you want earthquake insurance, you have to buy it separately or ask to have it added to your policy by endorsement. The time to seek earthquake insurance should always be before an earthquake and not after. Does earthquake insurance only cover damage from earthquakes? Policy limits vary based on risk, location, and the construction of each home, but you can request a quote from a Nationwide representative. Get your home covered against Earthquake damages and live life peacefully. We also checked for available discounts, and although we didn’t find as many related discounts to earthquake insurance, we found out that companies that offered earthquake insurance as an add-on could help you score great discounts if you bundle it with their homeowners. But it doesn’t have to be. The same applies to taller buildings: higher oscillation periods will be catastrophic for taller buildings, but not for smaller homes. Any health or personal information shared is protected by applicable privacy laws and regulations, including HIPAA. In some cases, these can be more severe than the initial incident. Our brand, ConsumersAdvocate.org, stands for accuracy and helpful information. They administer a mobile app and online claims portal but no 24-hour phone claims service. The downside is that, in most areas, the lowest deductible you can get is 10%, which is fairly high compared to other companies. To help you decipher the structural damages that are actually dangerous, we’ve come up with this graph that shows you the ins and outs of structural damage. Earthquake insurance is an added endorsement to your existing homeowner or renter’s policy, or a separate earthquake policy you buy. If you already have homeowners insurance but would like to get earthquake protection, ask your provider if they offer it as an add-on. Our content is free because we earn a commission when you click or make a purchase from links on our site. ICICI Lombard General Insurance Company Limited is one of the leading private sector general insurance company in India offering insurance coverage for motor, health, travel, home, student travel and more. It's usually sold with deductibles equaling 10 to 25% of the structure’s policy limit. This year alone, it has had 16. The Best Insurance Companies: Everything You Need To Know. To do this, we checked independent financial rating websites like Standard and Poor’s, Moody’s, and A.M. Best. State Farm stands out for two things: their superb customer service and the extra features that come with its earthquake policy. If you can’t pay your deductible, your insurer won’t be able to help you with repair costs, so you’d be in trouble with or without insurance. Next, you need to notify your insurance provider of the earthquake and report any visible damage. So, how do we cover our losses if our home is hit by one? Once you have chosen the home insurance policy suits your needs, all you need to do is click either ‘Apply Online’ or ‘Buy Online’ tab. These types of policies can often be obtained relatively cheaply, as well. We thus had to call each company directly to inquire about their features, and even then, they were reluctant to provide the information if we didn’t request a quote. For only $25 per month, this could be a valuable investment. Not only can you get a reduced quote overall, but you will also benefit from other discounts that the company might offer. Unfortunately, living in a state with a high risk of earthquakes also means that the premiums you’ll pay can be way higher than in states with lesser probabilities. Check with your current homeowners or renters insurance to see if it’s possible to include earthquake coverage to an existing policy, or request a quote from one of our recommended picks. Over the past 10 years, Chris has helped thousands of individuals find the right insurance solutions through his private practice and his publications. Yet just 12 percent of Californians who buy residential insurance policies also buy earthquake insurance. Conversely, there are eight states that have a very low earthquake risk: Florida, Iowa, Kansas, Louisiana, Michigan, Minnesota, North Dakota, and Wisconsin. For example, say that an earthquake occurs, and your home is damaged, and you immediately seek earthquake insurance from a provider. Usually offered only in states that are prone to seismic activity, companies all around the US offer the policy. It's a separate endorsement you must buy and add to your homeowner or renter policy. Most of these quakes are of low magnitude and rarely felt, and the majority center around the western and central United States, but that doesn’t mean that all other states are safe from an earthquake. This way, you’ll actually be able to finance the repairs in case something happens. Well, yes, but it also provides specific features that aid you and your home’s protection. It’s available in most states as an add on to your policy, or you can buy it from a carrier that specializes in selling earthquake coverage. Your email address will not be published. CEA policies are based on science, not profit. The biggest drawback for GeoVera is that it only offers its earthquake policies to four states: California, Oregon, and Washington. Nonetheless, they’re a good option for military families seeking no-frills coverage and good service. (For reference, modern buildings are expected to survive for 50 to 120 years, depending on how their constructed.). In some expensive and high-risk metropolitan areas like San Francisco, premiums can reach into the low thousands. This isn’t an issue with Nationwide, however, since r your personal belongings and your out-of-home expenses are covered equally if you need them. Typically, the coverage cap for personal property and loss of use is separate and varies, so you’d have to keep in mind how much the company offers for each. The state does make it easy to acquire coverage — companies that provide homeowners insurance in the Golden State are required to provide optional earthquake coverage as well. It all comes down to four characteristics: oscillation caused by the earthquake, frequency, duration, and building type/size. With more than 11 discounts available, you can save up to 5% from your homeowners and earthquake policy by setting up automatic payments, 20% when switching to Allstate without an insurance claim, up to 25% when bundling home and auto policies, and up to 10% for signing up for a new policy at least 7 days before the current one expires. A: The largest earthquake in Texas history had a magnitude of about 6.0 and occurred on 16 August 1931 near the town of Valentine, 220 km southeast of El Paso. By requesting a quote, or application for a quote, you agree to our Privacy Policy and our Terms & Conditions. Through their “Better Roof Replacement” program, you can ensure that the new roof over your head will be stronger, sturdier, and safer than the previous one. Twenty-five home insurance companies sell and service our residential earthquake insurance policies for homeowners, renters, condo-unit owners and mobilehome owners. It does not usually cover floods, fires, sinkholes, landslides, or any other catastrophic side-effects that result from an earthquake. With earthquake insurance, companies can set different deductibles for repairing your home and for personal possessions. Texas, which has probably the largest number of injection wells, had 18 earthquakes of magnitude 3 or greater from 2000 to 2008. A very low NAIC complaint ratio and A+ ratings from A.M. Best, BBB, and S&P make Nationwide an attractive and reliable choice for insurance coverage. States with a history of earthquakes will always have higher premiums, so they’ll be more expensive than states who suffer less from earthquakes. In the event of an earthquake, Mercury’s coverage protects properties, persons, and dwellings. Comprehensive protection covers your home, detached structures, personal property, and loss of use expenses. Invitations for application for insurance are made only where licensed by and through Consumers Advocate Group, LLC (in Florida, Consumers Advocate, LLC; in New York, Consumers Advocate Group of Washington, LLC; and in California, Fran Powel Insurance Services, LLC), and its designated insurance producer, Francine Powel, as an independent agent. Dwelling. Industry data shows that renters can anticipate annual premiums of about $300 for $50,000 worth of coverage with a 5 percent deductible, plus $1,500 for additional living expenses. Call your insurance agent to finalize the earthquake insurance policy. This type of property insurance isn’t a part of your regular homeowners, condominium or renters insurance, so it is offered by insurance companies either as an add-on to your homeowners insurance policy or as separate insurance from an alternate provider. A trusted homeowners insurance provider, Farmers, is constantly cited in best-of lists. 4. Covered losses typically include dwelling coverage, personal property coverage, and additional living expenses coverage. Here are the states with a “relatively high likelihood” of damage-causing tremors and temblors: If you live anywhere near the San Andreas Fault Line in California, the New Madrid Seismic Zone in Missouri, or the Ramapo Fault Line in the Mid-Atlantic, you’d be wise to consider earthquake insurance. What we didn’t see coming, though, was how little information most companies had about their earthquake insurance on their websites. Many homeowners shy away from earthquake insurance because of the chance of falling short of the deductible, but a lower deductible may be worth a higher premium. This is the only real way to know what your annual premium and deductible will be. For example, when company ranking is subjective (meaning two companies are very close) our advertising partners may be ranked higher. Earthquake insurance policies are available for homeowners, renters, condo owners, and even mobile homeowners. Earthquakes produce oscillations or repeated vibrations that turn into waves, which spread through the earth, creating the shaking commonly experienced during the event. For example, in California, a state with a great history of earthquakes, the average premium cost of earthquake insurance ranges from $800 to $5,000 annually, while states with little seismic activity who have fewer earthquake cases can typically get earthquake insurance at around $300 per year. Partners may influence their position on our website, including the order in which they appear on the page. Insurance policies described, quoted, shown, and illustrated throughout this website are not an offer for the sale of any particular insurance policy or product, only an invitation for application for insurance coverage and may not be relied upon. But homeowners insurance and renters insurance policies may not cover damages. The following is a quick breakdown of what earthquake insurance does and doesn’t cover. If you favor peace of mind, spending a little extra for earthquake insurance would be a great idea, as it only takes one rough earthquake to potentially damage your home. If your policy has a $250,000 limit with a 20 percent deductible, this means you’ll end up paying $50,000 out of pocket for repairs. A common assumption is that you only need earthquake insurance if you live in California. You may ask why there is a special type of insurance for this. A comprehensive guide to help you decide if earthquake insurance is right for you and your property. If, like many homeowners, you’re worried that coverage will be too expensive for you, go ahead and call around to ask for a few quotes from our top earthquake insurance providers. Earthquake Insurance is a separate policy added onto your existing policy. We also investigated each provider’s reputation and financial stability, plus the ease of filing a claim in case things get shaken up. They either had vague information, or they purely focused on how-to guides on protecting yourself and your property from earthquakes. USAA’s earthquake policies insure personal injury, personal belongings, and dwellings. The closer you are to a high-risk area, the higher your premiums will be, to protect your assets from perils. This makes it a great choice for those looking to fully insure their home from all possible threats through one provider and for those seeking out a standalone policy. How Much Does Earthquake Insurance Cost? It’s important that you and your insurer discuss the deductible amount that works best for you and your home. If you submit your personal information, you are making a consumer inquiry for life insurance through us as a licensed insurance producer as more fully described below. You may still be in danger even if you’re not along a fault line. They also offer a limited number of discounts, including multi-policy, claims-free, and loyalty discounts. 1. Mercury’s earthquake insurance includes personal belongings, dwelling coverage, and personal injury protection along with systems repairs and clean-up services for debris and broken glass. Use the free CEA earthquake insurance estimator to compare coverages and prices. To that end, you should know that many advertisers pay us a referral fee if you purchase products after clicking links or calling phone numbers on our website. When it comes to earthquakes, a higher magnitude might not translate directly to higher property losses overall. 5. Enter earthquake insurance, a policy capable of helping with the repair and/or rebuilding of your home and your personal belongings. With premiums so high in these places, getting earthquake insurance might seem like a fruitless endeavor, which is why less than 10% of homeowners in California have earthquake insurance. No portion of insuranceblogbychris.com may be copied, published, faxed, mailed or distributed in any manner for any purpose without prior written authorization from the owner. With straight-A industry ratings, favorable reviews, and a below-average complaint ratio as assessed by the National Association of Insurance Commissioners (NAIC), they’re a trustworthy choice for anyone looking to safeguard their home and belongings from seismic dangers. This disaster was the 5 th costliest disaster of all time.. Nationwide. For example, in 1994, a 6.7 earthquake hit Northridge, Los Angeles, causing an estimated $23.2 billion in insured losses, while in 1906, a 7.9 earthquake hit San Francisco, California, causing only 1.7 billion. Allstate’s earthquake insurance offers flexible deductibles that range from five to 25%, making it so that you can choose how much you want to pay based on your budget. Could you pay for hotel fees or temporary rent while your home is under construction? Liberty Mutual. If that waiting period wasn’t in place, you could easily file a claim to your insurer demanding reparations, even if the policy was bought after the earthquake. Speak with a representative to see if Allstate’s earthquake coverage is available in your area. USAA’s suite of insurance products and financial services are only available to military personnel, veterans, and their families. Some people assume earthquakes in the U.S. don’t cause mass destruction, but this is incorrect. Coverage includes protection for dwellings and personal property, as well as personal injury and additional living expenses. The United States Geological Survey (USGS) concluded that there are about 20,000 earthquakes per year worldwide - approximately 55 per day-, and in the United States alone, there are about 2,000 earthquakes per year. Some companies offer deductibles as low as 5%, while others can be as high as 50%. A study by the U.S. Geological Survey estimates the probability of a magnitude 7.5 or greater earthquake in the New Madrid zone over the next 50 years is 7-10 percent. Missouri is the third largest market for earthquake insurance among the states, exceeded only by California and Washington. Buy today. First, you should take pictures of the damage in your property and keep a record of these. These include dwelling coverage, a policy that helps repair the physical structure of your home and all attached structures, such as a garage; personal property protection, which protects your TVs, computers, tablets, furniture, and other property inside your home; and it also pays for extra living expenses you and your family may need if you’re unable to live inside your home while it’s being repaired or rebuilt. For example, say that an earthquake ruins your home and the personal property within, and you have two separate 10% deductibles for both your dwelling and your personal property. Is there a way to make earthquake insurance in these states cheaper? It’s important to note that insurance companies offer earthquake insurance either as an add-on to homeowner’s insurance (termed rider or endorsement) or as a separate policy altogether and that these offerings vary from state to state. There are two coverage options for earthquake insurance: comprehensive and standard. With 27000 companies you'll find the best coverage. You may also be able to insure other structures on your property such as tool sheds and detached garages for an additional fee, since these aren’t always included. Product name, logo, brands, and other trademarks featured or referred to within our site are the property of their respective trademark holders. In insurance terms, this is called “loss of use” protection. You should also keep receipts for food and lodging if you must live elsewhere while your home is being repaired or rebuilt. Ultimately the choice is yours. By proceeding, you give your consent and expectation to be contacted by a life insurance producer or company. This is because homeowners insurance usually covers these disasters, although flood insurance is offered as a separate policy. This will depend on the state you live in. Any reference in this website to third party trademarks is to identify the corresponding third party goods and/or services. As we researched companies and their earthquake insurance policies, we were disappointed to see that almost none of the big brand names explained their policies on their website, so we had to inquire about policy specifics by phone. Buy California Earthquake Insurance Online Earthquake Insurance Quote. Allstate. If you have any specific questions while considering which product or service you may buy, feel free to reach out to us anytime. It provides coverage if your home is destroyed by an earthquake. To make sure a company could pay out your claim, we checked and picked companies with a solid financial standing. Required fields are marked *. Earthquake insurance limits range from $100,000 to $500,000, including dwelling coverage, personal belongings, and personal injury protection. For example, in California, a state with a great history of earthquakes, the average premium cost of earthquake insurance ranges from $800 to $5,000 annually, while states with little seismic activity who have fewer earthquake cases can typically get earthquake insurance at around $300 per year. You have an escape plan, a radio at the ready, and a homeowners insurance policy… but is that enough? How We Chose the Best Earthquake Insurance The adjuster will provide an initial assessment of the damages, and if you disagree, you can try getting a second opinion through a licensed engineer or structural contractor, or through a public adjuster. Policy minimums and maximums vary by location. The 6.5 magnitude quake that struck near Eureka, Calif., on Jan. 9, 2010, was a reminder of this constant threat. Well, through our research, we learned that the best way to reduce premium costs is to refrain from buying earthquake insurance as a separate policy, and instead opt to bundle it with your homeowners insurance. They also include repairs to plumbing and electrical systems, as well as the removal of debris and shattered glass. However, earthquake insurance premiums on tremor-prone states can be very expensive, so if you’re interested in insuring your home, you can save by increasing your deductible and by bundling earthquake insurance with homeowners’. State Farm. Look for a rock-solid policy with a low deductible to protect your home and finances from sudden, violent tremors.