Many Silicon Valley property owners do not realize that their homeowner insurance policy does not cover earthquake damage. In fact, homeowner policies do not cover damage from any natural disasters. Therefore, it is a good idea to do some research, look at the numbers, and think about if earthquake insurance would be a good idea. Talk to your homeowner insurance broker about options and get a quote for earthquake insurance or visit the California Earthquake Authority to utilize a premium calculator.
Structural Improvements to Your Silicon Valley Home Can Lower the Premium
Only 10 percent of California homeowners have earthquake insurance. That number seems very low when thinking about the risk that comes with living in this area. Perhaps the risk vs cost factor is not convincing enough for most. Here are a few things to keep in mind when considering earthquake insurance. Mortgage companies require homeowner insurance but do not require earthquake insurance. Whatever company you use for homeowner insurance must be able to offer earthquake insurance. This insurance will not cover everything at your Silicon Valley property. It can help rebuild a house but not replace lost possessions.
While renters and condominium owners do not have to worry about personally buying insurance to cover the structure they live in, there are options for covering belongings and temporary shelter. The California Earthquake Authority (CEA) offers the earthquake insurance, but it must be purchased through a company that is a member of the CEA. Luckily, the rates have recently been reduced by the CEA and there are more options available with deductibles ranging from 5 to 25 percent. Also keep in mind that there are discounts available for making your home safer and stronger. Your insurance broker can give you more details about what upgrades to your Silicon Valley home would help to reduce your premium. While doing this research, also consider creating an earthquake preparedness kit. It never hurts to make sure your family has some essentials if disaster strikes.