How to Buy Earthquake Insurance in California

Natural disasters, especially earthquakes, can cause severe damage to real property. In California, earthquakes of small and/or large magnitude happen almost every year. If your home is located in California, it is worth insuring against quakes.

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Instructions

- 1
  Check your homeowner's insurance policy. In California, this type of policy sometimes covers earthquakes. However, many companies do not include it, in which case you will have to buy a separate earthquake insurance policy.
- 2
  Get data on earthquakes and seismic activity in your region. For some house types, earthquake insurance may not be needed. Whether or not you need a policy depends on the quality and type of construction and the materials used on your home. Buying insurance for wooden houses is cheaper than for brick houses. If you have not bought a house yet in California, then it would make more sense to buy a wooden house. Check the likelihood of earthquakes in your area and the vulnerability of your home before opting for insurance.
- 3
  Contact the California Earthquake Authority (CEA) office or log onto its Web site (see below). The CEA facilitates insurance policies for residents of California. Ideally, you should choose a policy that covers your real estate (your home) as well as all of your real property, including cars and other equipment.
- 4
  Shop for good quotes. There are a few local companies in California that offer earthquake insurance plans. The premium will depend on the total value of your property. An earthquake insurance policy is expensive, so be sure you get all information about possible discounts. For example, the CEA offers coverage of $75,000 on a $500,000 house with premium of about $2,000 per year.
- 5
  Go online and search the insurance Web sites. Collect rates for repair and replacement costs. Compare the premium payments and choose the one that suits you the best.

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