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What You Don't Know Can Hurt You

Possibly the most important thing to know about earthquake insurance is this: A basic homeowners policy does not cover earthquake damage. Even if you don't live in an area where earthquakes are common, it's possible you might need earthquake insurance.

Contrary to Popular Belief, Most of the US is Vulnerable to a Quake

Earthquakes have occurred in 39 states since 1900, and about 90% of Americans live in areas considered seismically active. Yet only a small percentage of people purchase earthquake insurance.

Even in California, where earthquake fears are a daily fact of life, only about 12 percent of homeowners have earthquake insurance, according to the California Earthquake Authority (CEA), down from 30 percent in 1996 when the state legislature created the CEA.

According to the U.S. Geological Survey, there is a 70 percent probability that one or more damaging earthquakes of magnitude 6.7 or larger will strike the San Francisco Bay area during the next 30 years. (A magnitude 6.7 earthquake is equivalent to the 1994 Northridge, Calif., earthquake that killed 57 people and caused $20 billion worth of damage.)

Regular Insurance Policies Do Not Cover Earthquake Damage

Homeowner, condo and rental insurance policies do not cover damage caused by an earthquake, but coverage can be purchased as an endorsement or a separate policy. Earthquake insurance can be quite inexpensive depending on where you live. Contact your insurance agent or company to find out what the costs would be for your home.

Not surprisingly, Californians buy the most earthquake insurance, but earthquake insurance has been sold to residents of all 50 states.

The Earthquake Education Center at Charleston Southern University claims there's a 40 to 60 percent chance of a major earthquake somewhere in the eastern United States in the next 20 years. That has prompted the South Carolina Insurance News Service to recommend residents of that state consider purchasing earthquake policies.

The New Madrid Fault, which runs through Arkansas, Kentucky, Missouri and Tennessee, also has insurers worried. According to the Insurance Information Institute, there's a 40 to 63 percent chance the region will suffer an earthquake with a 6.0 magnitude in the next 15 years. The availability of earthquake coverage has become an issue in some regions of those states. For those who don't remember, which would include anyone not alive in 1811, an earthquake struck the New Madrid area with enough force to change the course of the Mississippi river and ring church bells on the east coast.

"The potential magnitude of a catastrophic New Madrid quake dictates that we approach the preparedness on a regional basis," says W.R. Padgett, board chairman of the Central United States Earthquake Consortium. "No one state can possibly begin to address all the issues."

SAV-ON Insurance Offers Earthquake Insurance!

Although many insurance companies no longer offer earthquake coverage, we have a number of insurance carriers to choose from who offer earthquake endorsements or stand-alone coverage, with varying coverage and deductible options to fit every client's needs.

Things you might not know:

You do not have to have an underlying home policy to have earthquake insurance
It can cover your belongings at replacement cost
We even have a couple options for companies that cover extra things like brick veneers and "other structures" (sheds, detached garages, fencing, driveways and pathways, etc.) A lot of earthquake companies will only cover the actual structure, give a little coverage for loss of use, and a little coverage for belongings.
We can complete some of the companies by fax/e-mail/mail.
With a couple of the companies there are a myriad of payment options
We have coverage available for the homeowner that rents his home to a tenant (coverage to the house and a little coverage to belongings), coverage for renters (personal belongings only), coverage for condo owners, and of course for homeowners.