With more than two decades having passed since Californians have experienced a major quake, many homeowners have grown complacent about binding and maintaining earthquake insurance. By all assessments, the likelihood of California having another big earthquake in the future is high. In fact, most experts agree that another major quake is inevitable.
With earthquake insurance premiums ranging between $800 and $3,000 annually, however, it is still important to determine whether or not this coverage is right for you and your home in Irvine, CA. Learning more about the unique risk profile of your home is also vital for deciding how much coverage should be bound.
The Proximity of Your Home to a Fault Line
If your home lies on or near a major fault line, the magnitude of an earthquake and its impact on your home is going to be significant. Other geologic factors to consider include whether or not the home is situated on top of fill or natural bedrock. Each of these things will determine how much of an impact an earthquake of any magnitude will have on the overall integrity, value, and usability of your abode.
Your Home Insurance
It is important to note that earthquake insurance is not a standard inclusion in the typical home insurance plan. This is true even in a high-risk state like California. Earthquake insurance must always be bound separately, but may be available through your current home insurance provider. The good news is that there are currently a number of flexible options in this coverage that give homeowners the opportunity to choose policy terms and features that are specific to the risk profiles for their homes.
Earthquake Insurance for Condo Owners
If you’re considering buying a townhome or condo for sale in Irvine, it’s important to know earthquake insurance for condo owners works a bit differently. Condo Associations can bind this coverage for the actual building structure, while individual unit owners can bind contents coverage of their own. Contents insurance for damages caused by earthquakes is different from contents coverage for damages caused by other factors. Thus, condo owners should never assume that their existing basic plans are sufficient for covering any loss that is incurred as the result of a future quake.
Before buying an Irvine house for sale, it’s important to fully understand the costs of ownership—including insurance–which can quickly add up. Work with a dedicated agent who can walk you through the process and help you find a home that fits both your aesthetics and your budget. Don’t hesitate to reach out today!