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?
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.