Earthquakes aren’t covered by homeowners insurance , so if you live in an area prone to seismic activity, it may be worth buying earthquake insurance to protect your home and personal belongings from quake damage.
MARKETING. Though most insurers will provide earthquake insurance , few of them actively market the coverage . It is usually provided only at the request of the insured. You can find out who the top 20 companies are that market this coverage in Utah by going to our Earthquake Report found in the Market Share Reports.
AAA earthquake insurance is available to renters and homeowners in California. Your rates and deductibles will be higher if your home is in a state at risk for earthquakes , near an earthquake fault line, or in an area with higher seismic activity.
Homeowners and renters insurance does not cover earthquake damage. A standard policy will, however, generally cover losses from fire following a quake and, if such a fire makes your home unlivable, cover the additional living expenses incurred while you live elsewhere during repairs.
Top 15 Earthquake Insurance Companies
|1||California Earthquake Authority||23.8%|
|2||State Farm Group||8.2%|
|3||Zurich Insurance Group||6.9%|
|4||Chubb Ltd. Group||4.8%|
By not having earthquake insurance , you place yourself at risk of losing everything or having property damage that you can not afford to repair if an earthquake should happen . According to the U.S. Geological Survey, the U.S. has about 20,000 earthquakes a year.
How often do earthquakes occur in Utah? About 700 earthquakes (including aftershocks) are located in the Utah region each year. Approximately 2% of the earthquakes are felt. An average of about 13 earthquakes of magnitude 3.0 or larger occur in the region every year.
Earthquake insurance covers some of the losses and damage that earthquakes can cause to your home, belongings, and other buildings on your property. If you have a mortgage, you must have homeowners insurance . Your homeowners insurance does not cover earthquake damage (except fire—see page 7).
Premiums for earthquake insurance range from $800 to $5,000 annually, and deductibles are typically 15 percent of the total value of the home. California houses aren’t cheap –- the current median sale price is just under $400,000, and is higher in many of the counties most at risk.
AAA Auto Insurance has an “A+” rating with A.M. Best insurance rating organization. The company ranked third in a 2016 J.D. Power & Associates Purchase Experience Customer Satisfaction survey. The Better Business Association’s (BBB) rating varies by association.
The average cost of earthquake insurance in the US is $800 per year. Keep in mind that insuring a single-family house in California can cost more — between $1,248 to $2,744 annually for $500,000 of coverage.
Contact one of the following residential insurers to purchase a CEA earthquake insurance policy, or file a claim: ACA Insurance (AAA) Allstate . Amica Mutual Insurance Company . Armed Forces Insurance Exchange . ASI. Automobile Club of Southern California (AAA) California FAIR Plan. Commerce West.
Earthquake insurance usually pays for damage to the structure, temporary living expenses and personal property replacement. But you may still have hardship because of the deductible, and because payment might not come immediately. So if an earthquake destroys your home, you still have a mortgage obligation.
Some Californians suggest that the insurance companies are deliberately keeping the deductibles high to discourage more homeowners from buying quake insurance. – Big earthquakes do not happen often, so there is less information available to use in predicting the cost of repairing the damage.
Typically, it covers repairs to your home and other structures, replacement of personal belongings, and payment for additional living expenses if you can’t live in your home. It won’t cover flood damage , even if the flood is the result of the earthquake .