How Much Does Earthquake Insurance Cost?
If you live in an area that is bound to have earthquakes such as California, you’re more than like going to protect your valuable assets such as your home and the belongings inside. Since many policies don’t include an earthquake policy, this is going to have to be purchased separately.
How much is it?
- Depending on the deductible that you choose, you can chose policies varying from $10 to as much as $30+ per $100,000. For example, according to UtahEarthquakeInsurance.com, if you had a home worth $200,000, you may pay around $28 per month extra with their policy.
- In a state such as California, where earthquakes are quite common, the average bill can vary from $450 to $3,500 a year, depending on the size of your home, the structure and a few other factors.
- The CEA (California Earthquake Authority) has a simple calculator that you can use to get a fairly accurate quote.
Factors that influence the price:
- The zip code of the registered home. Every zip code will have their own odds in terms of the policy pricing.
- The value of the home. The more the home is worth, the higher the policy will be. The construction type, the age of the home and the flight of the stairs will play a role as well.
- The deductible will influence the price. The higher the deductible is, the more it’s going to cost. Additional add-ons such as the personal property, additional living expenses and more can add to the total cost.
What is going to be included?
- If an earthquake were to happen, and you had a policy, the insurance would be able to cover the damage done to your home. For example, if you had a $300,000 home that was destroyed, and you had a $2,500 deductible, you would have to pay $2,500 up front to have your home replaced.
What are the extra costs?
- Be aware of your other fees on your homeowner’s policy. Earthquake insurance is only a premium option that you can add on such as flood damage.
- The lower the deductible is on your plan, the more you’re going to pay in premiums. Be sure to talk with an insurance agent to discuss your insurance options.
Tips to know:
- Earthquake insurance policies are going to have a dwelling coverage, personal property coverage and additional living expenses coverage. The dwelling coverage is going to cover the insured value of your home. This coverage can have a deductible of your choice. The higher the deductible is, the lower the policy will be. Personal property will cover all of your belongings in your home such as electronics, furniture and more.
How can I save money?
- The higher your deductibles are, the more you’re going to be able to save.
- Compare policies through at least 3-5 companies. By doing so, you should be able to save a little bit of money.
- Premium discounts can be applied to those that have homes that are made from durable material such as a wood-frame foundation.