Is San Rafael Earthquake Insurance a Smart Investment for Homeowners?

Posted on: November 4, 2014 | By: Michael T. | earthquake insurance

San Rafael Earthquake Insurance

napa earthquake 2014Is Earthquake Insurance a Smart Investment for Homeowners in San Rafael?

In the catastrophic wake of the Aug. 24 earthquake in Napa Valley, homeowners in San Rafael are realizing the importance of earthquake insurance. While homeowners insurance is mandatory, as well as flood coverage in some cases, protecting your property from seismic activity is a personal choice. In the event of a sizable shake, most residents in San Rafael will be without aid.

Standard homeowners insurance does not include cover for earthquakes, and protection must be purchased separately. Unfortunately, these policies are pricey, and most homeowners in San Rafael opt not to invest in them. Instead, they choose to reinforce their homes, making the structure stronger to minimize damage during an earthquake. This is wise, whether you have earthquake insurance or not. Call Allied Restoration Company on 415-529-5637 for help with home renovations.

What Does Earthquake Insurance Cost?

In California, the average cost is estimated at $800 annually. However, San Rafael residents will pay much more. This is because San Francisco is particularly vulnerable to earth tremors, and homeowners typically pay between $2,000 and $5,000 for an average sized property. Various factors influence the final cost, such as the structure’s size, age and location. California Earthquake Authority recommends using their online calculator to get an idea of what you will pay.

Why Do So Few People Have Earthquake Insurance?

According to KQED News, seismic protection has long been considered a waste of money. This is because it is unlikely that insurance companies will pay out unless your property is damaged by a massive shake. Those that have invested in earthquake insurance generally opt for a high-deductible plan to reduce annual premiums, and few are aware of the latest policy options to insure their homes and possessions separately.

Will the Government Help Uninsured Homeowners?

It is unwise to rely on the government for any help after an earthquake. It is smarter to invest in an insurance policy that you know will pay, and do so quickly. The government may offer a loan, which you will need to pay back. If you are very lucky, you may get around $32,000 after a very unpredictable and long period, which will never cover the cost of rebuilding. The flood program is in debt of around $24 Billion, and the earthquake program is just as unstable.

When determining the risk profile of your home for potential earthquake damage, you need to investigate whether it is situated near a fault line, and if it stands on fill or bedrock. The materials and quality of the structure play an important role too. Securing hot water heaters to the wall, installing gas shutoff valves, and strengthening wooden structures with shear panels are examples of how to minimize property damage, and save money on homeowners insurance in San Rafael. Allied Restoration Company is available to advise you on how to retrofit your home for seismic activity. Call us on 415-529-5637.