Many people assume their residential insurance policy fully
protects them, but if you look at a typical policy, you will see
it does not cover earthquake loss. And government disaster-relief
programs are extremely limitedóthey are designed to help you get
partly back on your feet, but not to replace your home and
everything you lose. So if an earthquake strikes tomorrow, will
you have the financial resources to pay for earthquake damage to
your home and its contents?
When you consider your resources, ask yourself how much of your
investment in your home you are willing to put at risk. For many
California homeowners, their home is their biggest financial
asset. Without earthquake insurance, how do you plan to protect
that asset from the costs of earthquake damage? If you have a
typical home loan and deed of trust, did you know you remain
responsible for the loan balance even if your home is damaged or
destroyed by an earthquake?
Consider taking these basic steps as part of good planning and
preparation: Research the earthquake hazard in your area. Secure
the contents of your home to reduce the likelihood of damage and
injury. Investigate how well your dwelling is designed and
constructed to resist damage from earthquake motionóretrofit the
structure if necessary. Analyze your finances and develop a
financial-recovery plan in case an earthquake damages or destroys
your home or its contents.
There is good information available to help you. But only you can
decide if earthquake insurance is right for you.