Online Financial Tips

California is routinely hit with earthquakes, so routinely in fact that we have them every day to one degree or another. These daily events often go unnoticed by most people as they are too small or too far away from metropolitan centers to warrant notice. One thing that might warrant consideration, however, is the devastating effects that large earthquakes have had on other “earthquake prone” areas.

A 7.2 earthquake ripped through the town of Calexico on the California border in April 2010. The earthquake (the largest to hit the region in 120 years) actually moved the town 2 1/2 feet south and dropped it lower into the ground. Another earthquake hit the Chilean town of Concepcion earlier this year and moved that town a full 10 feet to the west. Even California towns have been shifted by seismic activity. The town of Loma Prieta in Northern California was moved 6 feet to the northwest and raised 4 feet in elevation when they were struck by a 6.9 earthquake back in 1989. Just think of what would happen if a sizable quake hits along the San Andreas Fault.

Because of the devastating and costly effects of earthquakes, many insurers have expressly excluded damage caused by seismic events from coverage under standard Property Policies. In order to better address the high costs of loss and to minimize the effects on the general insurance purchasing public, they have, over the years, devised specific policies to cover those devastating losses. Businesses should routinely discuss earthquake coverage with their broker. They should know how much the coverage costs, what and how it covers in the event of an earthquake, and should identify their specific exposure (proximity to faults and recent seismic activity). By gathering this information, and your broker should be able to provide most, if not all, of the information necessary to make an informed purchasing decision, you can determine your needs related to insuring against a catastrophic event.

• Home Owners Insurance Policy – Protection Against Earthquakes
• Protect Your House by Having Earthquake Insurance
• Condo Insurance – Floods and Earthquakes
• What to Consider When Searching For Earthquake Insurance
• When is it Worth it to Get Earthquake Insurance?