Jan 30
Earthquake Insurance Costs Too High?
If you live in an earthquake prone area, do you have earthquake insurance? Are you considering it? The cost of the policy can be daunting to some, but covering the cost of damages without it can be devastating. After an earthquake shakes the state, it’s common for there to be a bit of interest in procuring a new policy.
Tim Richison is the acting chief executive officer of the California Earthquake Authority. She says, “People will call agents requesting earthquake insurance quotes. There will be a few, but there won’t be a lot of new policies sold.”
Unlike most other insurance policies, the deductible does not have to be paid up front with an earthquake insurance claim. Instead, what your deductible is subtracted from your insurance pay out after an earthquake claim.
Tully Lehman is a spokesman for the Insurance Information Network of California and says, “Let’s say your house is totally gone. You get a check for the amount of the policy limit minus the deductible.”
Rather than take a chance, some will invest in earthquake insurance to be safe. Others are willing to gamble. High deductibles for earthquake insurance are common, so benefitting from earthquake insurance would mean a great amount of damage to your home. Many don’t think the risk of a home totally destroyed by an earthquake is probable.
Amy Bach is an executive director of United Policyholders in San Francisco, a consumer group active in insurance issues. She says, “In deciding whether to buy earthquake insurance, consumers need to determine how close they live to a fault zone, along with the age and construction of their home and foundation, among other things.”
Before you decide, get a quote. It’s better to know what your options are before you make a decision.
(No Ratings Yet)
Loading ...
Print This Post
January 31st, 2008 at 11:36 pm
I have been in two earthquakes in my life, both minor (thank heavens), but they scared the living bejeepers out of me. If I lived anywhere near a known fault line I would take a look at earthquake insurance immediately, if only for the peace of mind it would lead to… and only until I could move to someplace safer.
Jerry