Shaken up by the recent earthquake in California? You’re not alone – earthquakes are a common occurrence in the Golden State. While there’s no way to predict when and where an earthquake will strike, you can protect yourself with earthquake insurance.
But how does it work? In this blog post, we’ll dive into everything you need to know about earthquake insurance in California – from what it covers to how much it costs. So buckle up and let’s get started!
What is Earthquake Insurance?
In general, earthquake insurance protects property from damage caused by an earthquake. Coverage typically includes the cost of repairs and replacement of damaged property, as well as lost income due to disruption of business.
Typically, a policyholder pays an annual premium for quake coverage and then receives reimbursement for any losses suffered in the event of an earthquake. The amount paid out depends on the type of policy purchased and the severity of the quake.
Types of Coverage
There are three types of earthquake coverage that you may be eligible for in California: personal injury protection, property damage liability insurance, and general liability insurance. Each type of coverage has its own set of requirements and conditions that you must meet in order to be approved.
Personal Injury Protection (PIP) policies cover injuries that you suffer as a direct result of an earthquake. PIP policies usually have a minimum limit of $250,000 per person, and they typically cover medical expenses, lost wages, and other damages that you may incur as a result of the earthquake.
You must also meet certain requirements in order to be approved for PIP coverage, such as having a valid California driver’s license or state identification card, being resident in California at the time the earthquake occurs, and having proof of purchase or renewal of your PIP policy within 30 days prior to the earthquake.
Property Damage Liability Insurance (PDLI) covers damage to your property that is caused by an earthquake. PDLI policies usually have a maximum limit of $5 million per occurrence, and they cover both physical damage to your property and any liabilities that you may have related to the damage.
You must also meet certain requirements in order to be approved for PDLI coverage, such as owning your property at the time the earthquake occurs, having proof of ownership or rental agreement for your property at the time of the earthquake, and having paid off any mortgages on your property within six months prior to the earthquake.
How Does Earthquake Insurance Work In California?
In California, earthquake insurance is mandatory for all residential properties. The policy must have a $250,000 deductible and provide coverage for the structure and contents of the home. The policy also covers Personal Property Damage (PPD) which includes items such as furniture, clothing and electronics.
In addition, there are pre-existing conditions exclusions that apply to most policies. Policyholders can choose between various coverages including Comprehensive Earthquake Insurance, Renters Insurance and Homeowner’s Insurance.
