The latest “Earthquake Premium and Policy Count Data Call” from the California Department of Insurance (CDI) shows that in 2016, only about 5% of California renters with residential insurance also had earthquake insurance policies.
However, data from the CDI and the American Community Survey imply that only about one-third of renters carry residential insurance, so the actual percentage of renters with earthquake coverage is substantially lower than 5%. Bay Area cities have high numbers of renters, which means potentially hundreds of thousands would be left financially unprotected after a damaging earthquake strikes!
What Every California Renter Needs to Know About Earthquake Insurance
A low take-up among renters may be because you have misunderstandings about the value of earthquake insurance.
- Because a landlord’s insurance won’t cover anything beyond the structure of the home, it’s important that you understand you need your own policy to protect your personal property.
- In California, a renters insurance policy doesn’t cover earthquake damage, so a separate earthquake insurance policy is needed.
- With a CEA renters earthquake insurance policy, you can choose Loss-of-Use coverage, which covers additional living expenses if you must live and eat elsewhere following a quake. And don’t forget this Loss of Use coverage through CEA has no deductible!
- Government assistance, if available, is limited. The maximum FEMA grant available in 2017 was $33,300, but the average FEMA grant awarded after the 2014 Napa quake was just $2,670.
- CEA policies for renters are very affordable—as low as $35 per year ($2.92 a month)—and premiums depend on the earthquake risk where a renter lives and the policy coverages, limits and deductibles you choose.
If you do not have this insurance you are basically Self insuring against this future reality! Your insurance is the basis of any sound financial plan: Protect what you have and build from there! Otherwise, one big setback and you are starting over, and who wants to do that if they do not have to?
For a FREE Quote please contact my office: 650-FARMERS (327-6377), or email me at ctrowbridge@farmersagent.com
(Copied form the CEA website)
