Earthquake Insurance

By now you’ve seen the horrific pictures of the earthquake in Haiti.  Hopefully, you’re in a position to help by sending some money to the Red Cross or another worthy charity that can help.  While the whole world is shocked to see the damage, those of us in California have another thought in the back of our heads – are we next?

From the perspective of insurance it is vital to remember that Earthquake damage is specifically EXCLUDED under your Homeowner’s Insurance policy.  That’s right – no coverage… unless you add it to your policy.  Carriers are required by state law to remind you that you have this gap, but they won’t add it unless you ask them to do it.
The problem: Earthquake Insurance is not cheap and it has a large deductible, typically 15% of your Dwelling Coverage limit.  Example: you have $300,000 of Dwelling Coverage.  An earthquake strikes and destroys your home.  You still have the $300,000, less a $45,000 deductible.  It is for these reasons that many people simply decide NOT to purchase this coverage at all.  Amongst our own customers, very few people opt for this coverage and that scares us.  If you listen to the experts, the big one is coming.  See the map below:
Earthquake Index Map
Give us a call at (800) 681-2025 to see what it costs to add Earthquake to your policy. 
Purves Insurance is an Independent Insurance Agency in Davis, CA, and we don’t like earthquakes.