Unfortunately, it seems as though natural disasters have become a regular occurence all over the world during this past year. Many people have lost their homes to floods, tornadoes, fires and earthquakes. California is known as one of the most earthquake-prone states, yet statistics show that less than 15 percent of homeowners here have purchased California earthquake insurance.

Are Californians in denial about their risk? Even the most optimistic homeowners must know that the San Andreas fault line isn’t going anywhere, and it will always pose a threat to people who have spent their life savings on their home but have not obtained earthquake coverage to protect their investment.

The number of earthquakes that occur each year in the U.S. may surprise you. According to the Insurance Information Institute, there are about 5,000 earthquakes of varying magnitude in the country annually.

While premiums for California eathquake insurance may cost more than those for coverage on the East Coast, individuals who live in the Pacific Northwest do have the option of raising their deductible, which can lower their monthly premium. However, this means that they will have to pay for a higher percentage of the cost to repair their home if it is destroyed by an earthquake. Individuals who are looking to buy a home in California may want to consider the fact that the structure of the house they choose can affect their earthquake insurance costs. For example, newer homes with wood frames will be less expensive to insure than older ones that are made of brick since they are more likely to withstand and earthquake.

Considering the high risk that California residents have for experiencing an earthquake, purchasing insurance for this type of disaster seems like common sense. People who worry that they cannot afford earthquake insurance will likely find that the cost of coverage pales in comparison to that of replacing their home and possessions when an event does occur.

Posted 12:00 AM  View Comments

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