The recent earthquake and subsequent aftershocks from the La Habra, CA. earthquake were felt over many parts of Los Angeles, Orange and Riverside Counties.
For many years California has experienced a lull in earthquake activity. Many have indicated that this latest string of Earthquakes may start a new period of increased seismic activity in Southern California. Despite the enormous financial impact that an earthquake poses to one’s business and commercial property, many view earthquakes as an abstract risk . However unlikely it may seem, it is important to get the facts and take prudent financial precautions, including opting in for earthquake insurance to protect your assets.
What Does Earthquake Insurance Cover?
Earthquake policies typically cover damage to your building and your business personal property up to the insured amount less any deductible. You may also purchases coverage for loss of income and building and code upgrades. If possible, you’ll want to buy enough to cover the cost of rebuilding your building and replacing your property. While your standard property insurance policy may cover fire damage that results from an earthquake, an earthquake policy is important to cover damage that results from shaking, such as structural collapse.
How Much Will it Cost?
Because of the massive potential damages associated with an earthquake, coverage tends to be expensive. Your premium amount will depend on your location, along with the age and structural composition of your building. In addition, earthquake policies include a percentage deductible, generally ranging from 10 to 20 percent of total damages, which means you’ll still have significant out-of-pocket cost in the event of an earthquake. However, you’ll want to weigh the cost against your risk of experiencing an earthquake, and your ability to survive the financial aftermath of such a catastrophic event. In assessing your financial exposure, it’s important to know that the government typically will not provide much financial aid for earthquake victims, and help may be limited to low-interest loans that you will need to repay.
When buying a policy, you should read it closely to be sure you understand what is covered and what is not. Find out if it covers your building only or the attached structures as well, whether it will cover loss of use expenses if necessary, along with any other exclusions or limitations. You also should know how much time you have to file a claim following a quake, as damage is often not apparent immediately after the incident. Each policy is different. Peter Green Insurance Agency LLC can offer you recommendations. We have access to many companies to assist you finding the policy that best fits your needs and your budget.