When thinking about buying a home in California, getting earthquake insurance is something to consider. You’re probably all excited, picking out curtains, imagining backyard barbeques, and debating the best spot for your home office. Sadly, none of that matters if your house gets demolished by an earthquake. Honestly, it can’t get much worse unless your home catches on fire and burns down. Every homeowner wants to be insured after the fact when a natural disaster occurs.
Here are several undeniable reasons why earthquake insurance is necessary when buying a home in California.
The Reality of California’s Geology
Let’s get this straight – California is earthquake country. More than just a beautiful state with stunning beaches and endless sunshine, California sits right on top of the infamous San Andreas fault line. According to the U.S. Geological Survey (USGS), if you live in California, there’s a 99% chance you will experience a decent-sized quake within the next 30 years. That’s no joke!
More than a 99% chance! So, you can bet your bottom dollar that at some point during your home ownership, you’ll likely experience an earthquake.
Homeowner’s Insurance and the Earthquake Gap
You’re probably thinking, “I have homeowner’s insurance, so I’m covered, right?” Wrong. Earthquakes are a different animal altogether when it comes to insurance. Many people assume that homeowner’s insurance will cover everything, but the truth is, most standard homeowner’s insurance policies do not cover earthquake damage.
This common misconception often leads to heartache and financial struggle when the unthinkable happens. This gap in coverage is something you absolutely must address when buying a home in California.
Weighing the Cost: Earthquake Insurance vs Repair Bills
Alright, let’s talk numbers for a moment. Earthquake insurance isn’t cheap – it can run from several hundred to several thousand dollars per year, depending on the specifics of your home and its location. Many California homeowners would rather sell a house for cash instead of paying for earthquake insurance.
Before you balk at the cost, consider this: repairing earthquake damage can easily run into the tens of thousands, or even hundreds of thousands, of dollars. It’s a big pill to swallow, but when you weigh it against the potential out-of-pocket costs after a major earthquake, it starts to look like a pretty good deal.
To Buy or Not to Buy: Making the Decision
Ultimately, whether or not to purchase earthquake insurance is a personal decision. It comes down to a mix of factors: your financial situation, your risk tolerance, and how you feel about your home’s likelihood of withstanding a major earthquake.
If the thought of losing your home and still having a mortgage to pay gives you sleepless nights, earthquake insurance might be worth the peace of mind. Once an earthquake destroys your property, it’s gone. You can’t walk through the kitchen or take a virtual tour of your home. Undoubtedly, you’ll wish you insured your home for earthquake damage when one happens in California.
Where to Buy Earthquake Insurance
Start online when shopping for earthquake insurance in California. Check the reviews of the insurance provider and make sure you’re getting a good deal. Don’t be afraid to negotiate your insurance policy and decide what’s the best fit to protect your California home from earthquakes. It’s worth paying for a policy to avoid the tragedies later.
Get Earthquake Insurance When Buying a House in CA
Before you sign the dotted line on your dream home in California, take a deep breath and consider the earthquake factor. It may seem like just another box to check in the overwhelming home-buying process, but it could end up being one of the most important decisions you make. Earthquake insurance isn’t just about financial protection – it’s about peace of mind in a state where the ground beneath your feet likes to shake, rattle, and roll.