Okay, we know that we have active fault lines in California, we know that we’re situated on “the ring of fire”, and we do indeed observe frequent tremors. But could “the big one” really hit at any time? And does that mean we all need earthquake insurance?
Given the dire warnings, you would think all Californians would carry earthquake insurance on their homes. And yet, only about ten percent of us do (according to the California Earthquake Authority). What’s the deal?
That low percentage rate is probably due to the cost of earthquake insurance. Despite warnings to the contrary, many Californians don’t believe that “the big one” will strike within their lifetimes. And even if it does, they feel they cannot afford the premiums for earthquake insurance.
That’s why, in response to the low number of insured households, the California Earthquake Authority (CEA) decided to take measures to reduce premiums across the state.
After a study showed that spreading out the cost of earthquake insurance could aid in lowered costs, the CEA recently reduced earthquake insurance premiums by about 50 percent statewide!
That’s good news, since about 80 percent of the state’s earthquake insurance policies are currently purchased through the CEA. Last year, enrollment in earthquake insurance policies increased by about 700 percent (over 2015’s numbers). Clearly, Californians are excited about the prospect of insuring their homes against this disaster, at a drastically lower cost than before.
If you don’t have the financial resources to cover the loss of your home, it’s worth a few minutes of your time to investigate earthquake insurance rates. Give us a call, and choose one that is right for you.