Earthquake Insurance

Earthquake Insurance

Earthquake insurance covers some of the losses and damage that earthquakes can cause to your home, belongings, and other buildings on your property. 

If you have a mortgage, you must have homeowners insurance. But you don’t have to buy earthquake insurance. Your homeowners insurance doesn’t cover earthquake damage (except fire). 

The (3) parts of the basic earthquake coverage offered by the California Earthquake Authority (CEA).

Part 1: Your Dwelling Coverage. Referred to as Coverage A  and covers your home up to a certain amount , called the limit.

  • The limit of your earthquake insurance is the same as the limit on your homeowners insurance ( dwelling coverage).
  • CEA offers deductibles of 5%, 10%, 15%, 20%, and 25%. You do not have to pay your CEA  deductible up front to receive a claim check, it’s the amount deducted from your total covered losses.
  • CEA insurance doesn’t cover landscaping, pools, masonry, fences or separate buildings. 
  • Exterior masonry veneer is not covered unless you add that to your CEA policy.
  • If you rent from someone else or own a condo, you do not need this coverage.

Part 2: Your personal property coverage. This is sometimes referred to as Coverage C and covers things in your home, like furniture, TV’s and computers. 

  • The limit starts at $5,000 and you can increase the limit to $200,000.
  • Things like china and crystal are covered if you purchase optional breakables coverage. 

Part 3: Additional living expenses (ALE) or loss of use. This is sometimes referred to as Coverage D and covers temporary and extra costs to live somewhere else while your evacuated or your home is repaired. 

  • It is bound to a reasonable time needed to repair your home, or for you to move to another permanent home. 
  • It can cover temporary rental of a home, apartment, or hotel room; restaurant meals; a temporary telephone line, moving and storage; furniture rental; and laundry. 
  • The limit range from $1,500 to $100,00.
  • This coverage never had a deductible under CEA. 

If you have any questions or concerns about earthquake insurance call PM Insurance Services at (818) 365-3139. 

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