Earthquake Insurance In California.

All California homeowners insurance policies have to offer earthquake insurance under the California Insurance Code, section 10081. Earthquakes are difficult to predict but cause widespread damage. To cover the cost of expensive repair or reconstruction of a home damaged by an earthquake, the state of California expects all insurance providers to offer earthquake insurance. The policy must offer earthquake coverage in writing giving details of the coverage and deductibles. The insured is given 30 days to accept the coverage. The insurance must be offered every other year by the insurance company and the policy cannot be cancelled or rejected nor can the insurance company refuse to renew the policy because of the insured required earthquake coverage. 

  Earthquake Coverage In California.

Earthquake coverage includes coverage for the dwelling and personal property. The coverage under law should not be less than $5,000 or 10% of the covered dwelling’s value. Since there is always the possibility of additional damage by fire or water after an earthquake, additional dwelling coverage of $15,000 should be given. ALE or additional living expenses is given if the insured has to live away from the dwelling till the repairs are complete. This coverage can be waived if the insured does not actually live in the dwelling. The maximum deductible allowed is 15%.  

ALE: Additional Living Expenses.

California homeowners insurance companies provide additional living expenses. This coverage is for people whose houses are destroyed or badly damaged by the earthquake and who need additional accommodation till their home is rebuilt or repaired. There is a limit of liability for the coverage and if you want more coverage you will have to pay a higher premium. There is also a time limit for the coverage based on the estimated time for the completion of the house. The coverage includes stay in a rental home or hotel, meals in a restaurant, short-term utilities like electricity and telephone, furniture, relocation storage and laundry. It also provides for costs in the event of an evacuation.   

Coverage If The Building Does Not Meet Safety Codes.

Insurance companies need to give earthquake coverage even if the building does not meet current building health and safety codes. However, the insurance company can charge a higher premium. Some houses are retrofitted to protect the structure against earthquakes. You can lower the premium if the retrofitting meets the standards of the insurance company.

Getting Affordable Insurance.

The most convenient way of getting affordable insurance including earthquake insurance is to make use of an Internet insurance quote engine. The quote engine will give a choice of at least five insurance companies that have policies customized to your needs. It is recommended that you gleam at least three free quotes to find the best rate.