How Much Does Earthquake Insurance Cost in California? – ValuePenguin
California homeowners need earthquake insurance if they want full protection, as earthquake damage is not covered by homeowners insurance. Earthquake insurance costs an average of $3.54 per thousand dollars of coverage in California, which translates to an annual premium of $1,770 for a single-family home with a replacement cost of $500,000. however, depending on the insurer you choose, premiums can be as little as 10 cents per thousand dollars of coverage or as high as $15 per thousand dollars of coverage.
earthquake insurance rates in california by city
earthquakes are expected to cause $6.1 billion worth of damage a year in the us. uu. between 2010 and 2015, usa The Geological Survey recorded 1,545 earthquakes in the state of California that registered a magnitude of 3 or greater.
earthquake premiums vary by location. The closer your home is to a fault line in California, the higher your premium, reflecting the greater likelihood of earthquake damage and the resulting higher cost to protect your assets.
We break down how much it costs to protect your home, with earthquake insurance premiums from 34 insurance providers in 30 cities geographically distributed throughout the Golden State.
Residents of the Los Angeles neighborhoods of Echo Park, Silver Lake, and El Sereno tend to see cheaper premiums for earthquake coverage. Residents of Mar Vista, Culver City, and West Los Angeles typically pay higher premiums for the same coverage.
with the san andreas tectonic zone and hundreds of smaller active faults, the county is estimated to have a 60% chance of an earthquake with a magnitude of at least 6.7 in the next three decades, according to the e.u. geological study.
The cost of earthquake protection ranges from $2.90 to $3.09 per thousand dollars of coverage in San Diego. For $758,000 of homeowners coverage, the median home price in San Diego, the annual premium is estimated to be between $2,199 and $2,342.
Home to more than 1.4 million residents, and the Rose Canyon, Elsinore and San Jacinto fault lines, the city also has a 75% chance of a magnitude 7.0 or greater earthquake in the next 30 years, according to the california seismic authority (cea). the organization estimates that an earthquake of this magnitude would damage 45% of residential buildings.
Insuring a single-family home in san francisco against earthquakes can cost between $4.08 and $4.58 per thousand dollars of coverage. The Mission neighborhood sits at the cheaper end, while Nob Hill residents tend to see rates at the higher end of the range.
with the san andreas and hayward faults running through the metropolitan bay area, the united states of america the geological survey estimates that there is a 72% chance of an earthquake of at least a magnitude of 6.7 in the next 30 years.
How much do earthquake insurance costs vary by insurer?
the average cost per earthquake insurer ranges from 10 cents to $15 per thousand dollars of coverage for a single family home in california. estimated annual premiums range from $50 to $7,500 for coverage limits of $500,000, illustrating the importance of comparing quotes.
The chart below ranks companies by their cost of coverage per thousand dollars, starting with the most affordable. The quote you receive may vary depending on the features of your home, including the foundation, number of stories, and year of construction. This chart also doesn’t include carriers like Allstate, State Farm, or USAA, which refer to the California Earthquake Authority to calculate rates.
The companies with the three lowest earthquake insurance rates are cincinnati insurance co., privilege underwriters exchange, and aig, with average rates ranging from 10 cents to $1.30 per thousand dollars of coverage .
on the other hand, the three companies that charge the highest fees are aegis security, american modern and pacific specialty. these insurers quoted rates that are 16 to 150 times higher than the rates of the cheapest competitors. For these more expensive carriers, rates are fairly consistent and aren’t affected much if the owner lives in a low or high earthquake risk area.
earthquake insurance policies
The California Earthquake Authority (CEA) is one of the largest providers of residential earthquake insurance in the world. a publicly run nonprofit, partners with insurers to help Californians manage their earthquake-related risks and losses.
Cea offers two earthquake insurance policies: Owner’s Choice and Standard Owner. the biggest difference between the two policies is that the owner’s choice policy doesn’t automatically include personal property or loss of use coverage. Homeowners Choice policies are usually cheaper, but we generally recommend buying the standard homeowners policy. Unless you’re sure you can replace your personal property and have a place to stay after an earthquake, it’s worth paying for loss of use and personal property coverage.
earthquake insurance deductibles
Your deductible will work slightly differently depending on whether you have a standard homeowners policy or an owner’s choice policy. If you have a standard homeowners policy, your insurance company will only subtract the cost of one deductible, the homeowners coverage deductible, from your claim payment.
By contrast, policyholders with an owner’s choice policy have a separate deductible for personal property coverage. however, this personal property deductible is only required if the policyholder does not pay their homeowners coverage deductible. If the earthquake damage is so significant that the policyholder pays the deductible on their homeowners coverage, both homeowners and personal property coverage are activated.
earthquake cea insurance for mobile home owners, condo owners and renters
California Earthquake Authority policies are obtained through cea member insurance companies. Participating insurers include some of California’s leading homeowners insurance providers, such as State Farm, Allstate, and USAA.
frequently asked questions
We looked at examples of earthquake premiums submitted by insurance companies to the California Department of Insurance. the sample included 57 companies, and 35 carriers submitted samples of actual rates. Twenty-two insurers were excluded because they did not provide actual rates and referred to the California Earthquake Authority to calculate rates, or their earthquake insurance was underwritten by another company on our list. Rates that were substantially higher than the majority of quotes provided were excluded.
rates are listed per thousand dollars of coverage. To determine your Estimated Rate, take the amount of coverage you need, divide it by 1,000, and multiply by the Estimated Rate. For example, if you need $800,000 of coverage, calculate: $800,000 / $1,000 times $800, multiplied by the study average coverage rate of $3.54, for an estimated annual premium of $2,832. the actual quote and the premium you will pay may differ and depend on where your home is located and what type of home it is.
earthquake statistics were compiled from the federal emergency management agency (fema), united states of america. geological survey and earthquake authority of california.