Standard homeowners insurance generally does not cover earthquake damage, thus it must be purchased separately. However, all insurance companies that offer residential property insurance in California must also offer earthquake insurance. The California Earthquake Authority is a publicly managed, largely privately funded organization that offers a range of basic residential earthquake insurance options available through participating insurance companies such as Farmers. In fact, about two-thirds of major insurance companies provide this type of earthquake insurance. Contact a B.W. Baker representative to learn more.
Earthquakes can result in catastrophic financial loss, and most home insurance policies do not cover earthquakes. You are actually required have an existing homeowners policy before applying for earthquake insurance. There are limited government disaster-relief programs, but they designed to only provide the most basic post-earthquake assistance. You will be financially responsible for replacing your home and its contents. In addition, the typical home loan leaves you responsible for the loan balance even if your home is completely destroyed. This is especially important when you consider that your home may be your biggest financial asset. Are you willing to expose yourself to such risk?
There are many factors to consider when determining the appropriate amount of earthquake insurance coverage. How much would it cost to rebuild your home? Can you afford to replace your household possessions? Where will you find temporary accommodations if your home becomes unlivable? Can you afford to continue repaying your mortgage or loans while also paying to rebuild your home? How much risk is your family willing to take? It’s not worth waiting. Contact a B.W. Baker representative today.
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