California Homeowners Save Big with Earthquake Insurance Policy

Factors Influencing Earthquake Insurance Costs

Several factors affect the cost of earthquake insurance premiums in California. These include the location of your home, its age and construction type, and the deductible you choose. Homes built on solid rock or with modern building codes may have lower premiums due to reduced risk of damage. Additionally, selecting a higher deductible can lower your premium, though it requires you to pay more out-of-pocket if a claim is made².

Real-World Examples and Statistics

According to the California Earthquake Authority (CEA), only about 10% of homeowners in the state have earthquake insurance³. This low adoption rate is often due to misconceptions about cost and coverage. However, the CEA offers flexible policies that can be tailored to different budgets and coverage needs. For example, they provide options with deductibles ranging from 5% to 25%, allowing homeowners to select a plan that aligns with their financial situation.