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Earthquake Insurance, Is It Really Worth It? |
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Here's how to tell. Ask yourself, if you were to lose your home in an earthquake, would rebuilding it cause you a financial hardship? If the answer is no, you don't need insurance. If the answer is yes, read on.
Earthquake insurance is not included in most homeowners policies. You must purchase it separately. However, there is a high likelihood that it is available from your homeowner insurance company since insurance companies that sell fire insurance for your home are required by law to offer earthquake insurance.
Finding an agent.
If you don't already have an agent, ask your neighbors who insures their homes. Industry associations can also be of help. Here are four in California.
American Agents Alliance (626) 795-0519
Insurance Brokers and Agents of the West (800) 772-8998
Latin American Agents Association (626) 444-0999
Professional Insurance Agents Group (800) 553-4221
Another source of insurance company names is the Homeowners Premium Comparison, www.insurance.ca.gov/docs/FS-Looking.htm. Here is a partial list of companies offering earthquake inusrance:
Limited Coverage: Phone numbers:
CEA (California Earthquake Authority
Allegiance Insurance Company
American National Property and Casualty Co.
California Capital Insurance Co.
Century National Insurance Co.
Civil Service Employees Insurance Co.
Eagle West Insurance Co.
Residence Mutual Insurance Co.
Topa Insurance Co.
Traveler's Property Casualty
Extensive Coverage:
AMICA Mutual
Calfarm Insurance Co.
Chubb Group
Clarendon Group
Five Star Insurance Co.
Geovera Insurance Co.
The Hartford
Pacific Select
Before deciding on an agent you may wish to check the status of the agent's license. Go to www.insurance.ca.gov/docs/FS-AgentFind.htm. for license staus inquiry in California.
Compare premiums.
Premiums are calculated differently by each carrier. Variances in rating factors can result in a wide range of calculations. Older homes generally cost more to insure. Retrofitting can qualify you for discounts. The California Department of Insurance compares the premiums of all the larger insurors allowed to sell earthquake insurance in the state.To see the comparison go to www.insurance.ca.gov/docs/FS-Looking.htm
Remember deductibles.
Deductibles on earth quake policies are significant. They may be 10 to 15%. And note this, the per centage is not of the amount of damage but of your home's insured value!
Know your coverages.
Some policies cover only the main dwelling, not detatched garages, walk ways, out buildings, decks, or garden walls.Is personal property covered? Or living and moving expense? How does the coverage deal with changes in building codes since your home was built?
Help with Problems.
In California consumers may contact the Consumer Communications Bureau by calling the Consumer Hotline at (800)927-HELP. During 1999 the Bureau closed 15,852 complaints and was able to recover $9,422,631 for California consumers.
Also the Consumer Services Division , made up of the Market Conduct and the Field Rating and Underwriting Bureau, are responsible for conducting company examinations based in part on the results of consumer complaint handling. The number for callers outside California and for those in the California area codes 213 and 310 is (213) 897-8921. The number for the rest of California is 1 (800) 927-HELP. The Hotline operates from 8:00 a.m. to 6:00 p.m. PST/PDT, Monday through Friday (except Holidays)
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