Can you buy separate earthquake insurance?

No. Homeowners and renters insurance policies do not cover damage caused by earthquakes, so if you live in a high-risk area, you’ll likely need to buy a separate policy, along with your base homeowners or renters insurance policy.

Why is earthquake insurance deductible so high?

Earthquake deductibles are high because the damage from them tends to be catastrophic, making them a higher risk for insurers. To cover costs, they need to make deductibles high.

Can a homeowners insurance policy cover an earthquake?

For example, your homeowners policy covers fire damage, even if an earthquake causes the fire. Therefore, your earthquake policy does not cover fire damage. Usually, earthquake insurance does not cover damage to your land, such as sinkholes from erosion or other hidden openings under your land.

Do you have to pay CEA up front for Earthquake insurance?

You do not have to pay your CEA deductible up front to receive a claim check, it is simply the amount deducted from your total covered losses. As with most earthquake policies, CEA insurance does not cover landscaping, pools, fences, masonry, or separate buildings.

Why is the cost of earthquake insurance so high?

Insurance is based on the ability of the insurer to pay out losses and the ability for the insurer to collect enough premium over time to cover the claims that occur. With very low percentages of people purchasing earthquake insurance, the cost is higher because there isn’t sufficient premium being collected from the masses to cover the risk.

What happens if your home is damaged by an earthquake?

If your home is damaged by an earthquake, you will be covered for repairs or reconstruction rather than losing everything, or having to borrow (more) money to make your home livable. In lower-risk areas, the cost of earthquake insurance is lower, so you won’t be paying the kinds of premiums people pay in high-risk areas.

Why do some associations choose not to purchase earthquake insurance?

I can, however, share with you why some associations we manage choose not to purchase earthquake insurance and why others feel it necessary.

Do you have to have earthquake insurance for a condo?

If you want to buy earthquake insurance for your unit, and your HOA has not bought earthquake coverage for the buildings, many insurers won’t issue you an individual policy. In states like California, however, if a company sells condo insurance to unit owners, it must offer quake coverage.

Do you have to have earthquake insurance if you have a mortgage?

If you have a mortgage, you must have homeowners insurance. But you do not have to buy earthquake insurance. Your homeowners insurance does not cover earthquake damage (except fire—see page 7). I have homeowners insurance. How can I get earthquake insurance?

What kind of damage is covered by earthquake insurance?

Therefore, your earthquake policy does not cover fire damage. Usually, 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 land. Earthquake insurance does not cover damage to your vehicles.