In most places in the United States, Earthquake insurance isn’t such a huge topic of interest. In California, this could not be further from the truth.
Earthquake insurance usually comes in two forms: as part of a package or monoline. Let’s look at these two situations.
In the first scenario you can potentially endorse your homeowner’s policy (or condo, renters, dwelling) to provide you with coverage in case of an earthquake. Your agent is required by law to offer you this coverage when selling a homeowner’s policy. This endorsement is an add on as it’s part of the package that is your entire policy. Frequently, the insurance carrier obtains this coverage through an organization called the CEA, the California Earthquake Authority. Not all carriers use the CEA to offer earthquake coverage which brings us to the second scenario.
Truthfully, the coverage you get from an endorsement is somewhat limited. To get into the specifics, you can speak to an insurance agent but essentially many individuals opt for monoline coverage. Monoline refers to an entirely separate policy. There are downsides and upsides to this as monoline coverage can be pricy but it covers a lot more than a simple endorsement. You are also not limited to using the CEA as there are several different companies who specialize in Earthquake insurance.
If you live in California then you know the reality of the situation is that earthquakes are imminent and unpredictable, despite the best efforts of seismologists. Learning about earthquake insurance is one of the many reasons to speak to a qualified insurance agent today.