Earthquake Insurance’s Growing Market
Data presented last week at the National Earthquake Conference in Long Beach, CA regarding the San Andreas Fault painted a chilling picture of what scientists see as a fault that is “locked, loaded, and ready to roll,” with the potential to erupt in an 8.0 magnitude quake (click here or the linked picture to read the full article from the LA Times).
Though we’ve seen these reports before, the news certainly spurred several discussions among our clientele regarding earthquake insurance, as many of them live in Southern California.
Here’s the good news about earthquake insurance: Right now it’s easy to procure and the market is soft, benefiting from years of built up capital reserves among insurance companies who are now fiercely competing for policies, both of which have driven premium prices down. Deductibles, usually based on a percentage of premium price, are now as low as 5% in some cases.
If you are considering earthquake insurance, a discussion with your respective agent may be warranted at this point. In speaking with several of our own specialty carriers, earthquake insurance policies are not only being written extensively in California, but in Nevada, Arizona, Oregon, Washington, and Utah.
Homeowners, renters, condo owners: Your agent can find you a carrier associated with the CEA (California Earthquake Authority), or a stand alone carrier such as GeoVera, an extremely competitive specialist in earthquake insurance. For those renting, earthquake insurance will protect any of your contents that are damaged in a quake.
Business building, condo, apartment owners: Carriers such as Palomar, Golden Bear, and QBE are especially competitive in the commercial space.
All that being said, let’s hope the fault stays “locked, loaded, and ready to roll” for another 100 years without budging.
Stay safe, stay healthy,