In most cases, homeowners are not required to purchase earthquake insurance. In fact, it is estimated that roughly 12 percent of California homeowners have earthquake insurance. Many homeowners cite the increased deductible and decreased coverage for not insuring their home against earthquakes. However, even prior to the Northridge earthquake, less than one-third of California homeowners purchased earthquake policies.

Despite reductions in “standard” earthquake policies, consumers are being offered additional choices when it comes to quake insurance.

Standard Earthquake Policy
The CEA is not the only company that offers earthquake insurance. Many private insurance companies also offer quake policies. While most policies have similar coverage limits, consumers can shop around and compare rates as well as coverage limits.

Stand-Alone Policy
Consumers do not have to purchase an earthquake insurance policy through their homeowner insurer. Today, several companies offer stand-alone policies. This means that consumers may purchase an earthquake policy from a different insurer than their homeowner insurance company.

Wrap-Around Policy
Many insurance companies offer so-called “wrap-around” policies to augment existing earthquake insurance. By purchasing a wrap-around policy, homeowners can decrease their policy deductible or increase coverage for contents.

For more information on earthquake insurance policies, homeowners should contact their insurance agent or company. Additional resources include:

Calif. Dept. of Insurance Helpline (800) 927-HELP (-4357) www.insurance.ca.gov
Calif. Earthquake Authority (877) 797-4300 www.earthquakeauthority.com