SAN DIEGO (KGTV) — Every day is earthquake season in California with active faults crisscrossing the state, and as homeowners look for ways to protect their homes, experts say buying earthquake insurance is an important step.
Even before an earthquake knocks items off shelves and causes damage, preparation for the next big one should be done before it happens, specifically when it comes to earthquake insurance, which is added protection homeowners can purchase that's not part of your regular homeowner's insurance policy.
"Earthquake insurance is really important, especially in California and San Diego County. There have been studies of this area and there are fault lines and potential earthquake hazards," said Janet Ruiz with the Insurance Information institute.
Depending on the type of earthquake insurance you're looking for, it could cost you a couple hundred dollars a month to a couple thousand. Experts say over the last few years, there are some areas that have seen a slight decrease in price, but overall, the majority of premium costs have stayed the same.
The policy will depend on factors such as the age of your home, the materials your home is built with, type of foundation and the home's proximity to a fault line.
"The more land and bigger your house is, the more expensive it's gonna be, or in the more risky areas. So if you're in outlying areas, it can be a few $100 a year, up to, you know, $1,000 to $2,000, could be more if you have a really big estate," Ruiz said.
When it comes to a deductible, that typically ranges from 5% to 25%. But homeowners can choose to lower their monthly premium by choosing a higher deductible, which translates to more out-of-pocket expenses before insurance kicks in.
Ruiz warns out-of-pocket repairs can be pricey. Earthquakes can cause major damage to a home's foundation, a repair that could cost anywhere from $2,000 to upwards of $10,000. Roof damage repairs could range from $1,000 to $10,000 depending on the extent of the damage.
When looking at data, Ruiz says in California, only 10% of homeowners purchase earthquake insurance. And while many residents don't believe they need it, Ruiz lays out why having earthquake insurance can save you money in the long run.
"Insurance will actually pay to rebuild your home, and there is not really a big avenue to rebuild your home from FEMA, which is the Federal agency that gives out the money. So, you know, usually the most you can get from FEMA is around $30,000, which isn't gonna do much in California," Ruiz said.
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