According to the Los Angeles Times, only 17% of California’s homeowners have earthquake insurance. Knowing you are protected in case “the Big One” hits is a great thing for peace of mind, especially for those of us in the San Francisco Bay Area.
Until recently, available policies have had very high deductibles and very limited benefits for temporary housing and personal belongings.
Now, however, some highly-rated carriers are offering more generous policies that may be well-suited for clients with homes worth over $500,000. These more robust policies offer lower deductibles, a bigger pool of money for temporary housing and personal belongings, and even a cash out option (you can take the insurance money and opt out of rebuilding).
These new policies are expensive—at times quite a bit more expensive than previous options—but their coverage might be very beneficial as a way to protect your equity.
So: does earthquake insurance make sense? This article discusses practical considerations to keep in mind when it comes to evaluating earthquake insurance and your circumstances.