California Earthquake Authority launches new options to make earthquake insurance more available
Homeowners in California will have more options when it comes to earthquake insurance in 2016. The California Earthquake Authority will be offering new options for consumers, allowing them to purchase more affordable insurance coverage that better suit their needs. This comes as a response to the fact that many homeowners lack earthquake insurance coverage, which can expose them to significant financial risks that they may not be able to handle on their own.
Many consumers lack the earthquake insurance that they need
The California Earthquake Authority has often warned of the danger that earthquakes present. These disasters are largely unpredictable and can strike at any time. Earthquakes can also cause a significant amount of damage, depending on their severity. Many consumers are aware of the dangers associated with earthquakes, but falsely assume that their existing homeowners insurance coverage will protect against these natural disasters. The problem, however, is that the majority of homeowners do not have earthquake insurance, which leaves them exposed to serious risks.
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Number of consumers with earthquake protection has fallen since disastrous disasters of the past
According to the California Earthquake Authority, in 1994, following the notorious Northridge earthquake, only 30% of homeowners had earthquake insurance. Despite the damage caused by the disaster, consumers have actually been abandoning this form of insurance coverage. The California Earthquake Authority notes that approximately 15% of homeowners in the state now have earthquake insurance. The new options being offered by the organization may help resolve this problem, ensuring that more consumers have the coverage that they need.
Homeowners may be able to receive a discount on their earthquake insurance
The overall cost of earthquake insurance is determined by a home’s proximity to a faultline. Homes constructed before the 1940s are particularly susceptible to the damage caused by earthquakes due to their age and the practices used to construct these homes in the past. Some homeowners are being encouraged to fortify the foundations of their property, which will protect against earthquake damage and this could make them eligible for discounts on their earthquake insurance coverage.