Are Earthquakes Covered By Your Homeowner’s Insurance?

Southern California experienced a few startling earthquakes in July of 2019, and a bevy of questions came along with it. Here’s one of the major questions we commonly encountered: 

“Does homeowner’s insurance cover earthquakes?”

Homeowner’s insurance typically covers damages from a wide range of sources— fire, smoke, hail, lightning, and theft are covered by most policies. Earthquakes, however, are not usually covered. 

When an earthquake occurs, damage to the structure of the home and the home’s materials can occur. Those damages aren’t covered by homeowner’s insurance. However, if your home has a fire as a result of the earthquake, most homeowner’s insurance policies will cover the damages from that fire. 

While these last two earthquakes in the Southern California area were far from devastating, it makes one pause and consider their options to protect their home in the event of a major catastrophe. 

So, if homeowner’s insurance doesn’t have you covered, what does? 

Earthquake insurance. And while earthquake insurance isn’t the most common policy to acquire, it’s something you may need to consider— especially if you live in an earthquake-prone area (like California). 

It’s important to know that earthquake insurance policies are typically more expensive in states like California because they occur more often. 

When considering earthquake insurance, ask yourself these questions: 

  • Can you afford to pay for major damages out of pocket? 
  • Can you replace your personal belongings if they are lost or destroyed? 

While it’s not a guarantee, there are nonprofit organizations in California that can rebuild your in the event of a devastating earthquake (as well as provide emergency services). The California Earthquake Authority (CEA) is one of those organizations. 

Have questions about your insurance options? Kelly Williams Insurance is a Long Beach, CA insurance agency that has a variety of plans to keep you covered in different situations. Contact us today to learn more.

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