October 20, 2011
By: Carrie Van Brunt-Wiley
Despite the perceived high risk of earthquakes in California, many residents in the state - along with others across the country - do not have earthquake insurance in addition to their standard homeowners insurance policies.
Data from the Insurance Information Network of California says less than 12 percent of 2010 homeowners had earthquake coverage, which must be purchased separately from standard plans.
Many homeowners nationwide appear to be unclear about the policies, USA Today reports, with some people unsure that they are even available in their areas. However, others told the paper they provide worthwhile protection.
"I remember thinking when I bought earthquake insurance the first time that if I put an amount equal to the earthquake premium away each year it would take 2,000 years to save enough to replace my home if it were destroyed," John Bratton, a homeowner and professor of insurance and risk management at the University of Central Arkansas, told the paper.
A serious earthquake could have severe financial implications for homeowners. Risk Management Solutions says a major earthquake from the Hayward Fault system near San Francisco - which the firm says is due for a seismic event - would put $1.9 trillion worth of property at risk.
Related Home Insurance Articles:
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- Safety officials call attention to home sprinkler system regulations May 24, 2012
- Thousands of St. Louis insurance claims cite recent hail damage May 22, 2012
- Tropical Storm Alberto changes course away from Carolinas May 21, 2012
- California tops the nation in dog bite claims May 17, 2012
