Earthquake Insurance: Need It, Don’t Need It?  That is the Question.

     Lately, there has been a lot of talk about the infamous San Andreas Fault that runs through California.  An earthquake scientist at the National Earthquake Conference in Long Beach, CA stated it looks like it’s “locked, loaded and ready to roll”.  Sounds pretty scary, huh?  We’re here to give you some information on Earthquake Insurance to see if it is something you would like, or need, in the event of “THE BIG ONE”.

     Earthquake Insurance IS NOT part of your regular Homeowner’s (H.O.) Insurance policy.  It is purchased separately and differs from Homeowner’s Insurance.  Unlike your H.O. insurance policy, there is no set deductible for Earthquake (E.Q.) Insurance.  It is based on percentage (typically between 5%-20%).  For example:

·         You have $300,000 H.O. coverage

·         E.Q. insurance covers 15%

·         Your deductible will be $45,000

    While the deductible is high, think about the cost of rebuilding your home in the event of a total loss…more than $45,000, right?  Without E.Q. insurance, your home would have to be rebuilt out of your own pocket.  E.Q. insurance covers three major components: your home, your personal property, and additional living expenses.

    So, do you need it?  Consider this, there are 42 states at risk for earthquakes, 16 of which have registered magnitude of 6 or greater on the Richter scale.  Roughly 200,000 earthquakes occur each year, most of them happening right here in the U.S. according to the U.S. Geological Survey.  We found this great article about the San Andreas Fault to give you a better understanding of the risks.      

     If you would like a quote for E.Q. Insurance, our knowledgeable Personal Lines Agents would be happy to help.  You can ask for a quote here or by calling Armstrong Fairway Insurance Agency at (760) 245-2561.

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