Residential Earthquake Insurance

 No matter where you live, homeowners insurance policies generally cover damage from the same events such as hail, fire, or lightening. For some homeowners, there are additional risks related to the location of their home that are not covered in a standard policy. For many California residents, earthquakes can be a real threat. We never know exactly when and where earthquakes will happen, so it is important to be adequately prepared. Part of this preparation is having an earthquake insurance policy in place to supplement your existing homeowners coverage. Morning Star Agency Insurance Services, Inc., offers earthquake insurance to residents throughout Irvine, Orange County, and the greater Los Angeles area.

What does Earthquake Insurance Cover?

Much like your homeowners insurance policy, earthquake insurance is meant to provide coverage for damage done to your home and attached structures such as a garage. Your personal belongings such as furniture and clothing can also be covered. If the damage caused by an earthquake is enough to force you out of your home while repairs are made, your policy may cover living expenses such as the cost of a hotel.

Earthquakes can cause tremendous amounts of damage. Often the damage can be the result of a fire or flood that was caused by the earthquake. It is important to note that an earthquake insurance policy will not cover fire or flood damage, even if the damage was a direct result of the earthquake. Your homeowners policy will cover fire damage and you will need a flood insurance policy to cover any flood-related damage.

Deductibles and Rates

With homeowners insurance, you tend to have a bit of freedom when it comes to your deductible. You can choose a higher deductible to save on your annual premium, or opt for a lower deductible while paying a bit more throughout the year. When it comes to earthquake insurance, your deductible will be a percentage, usually 10-20%, of your total policy limit. For example, if your home is insured up to $400,000, your deductible will be between $40,000 and $80,000. There may also be separate deductibles for both dwelling and personal property coverage.

Insurers use a number of different criteria to determine the rates for each individual policy. These factors can include:

• Your deductible
• Your total coverage limit
• The location of your home in relation to fault lines
• Your home (age, number of floors, building materials used, etc.)
• The type of soil your home was built on

Our team of experienced agents can help break down your limits, deductibles, and what went into determining your rate so you have a full understanding of your policy and coverage.

Earthquake insurance is an important addition to homeowners insurance for many California residents. If you are located in Irvine, Orange County, or the greater Los Angeles area, contact Morning Star Agency Insurance Services, Inc. to learn more about your earthquake insurance options today!