Myths and Facts Regarding Earthquake Insurance

Myth #1
" There is little chance of a large Earthquake in the Southern California Area"!

Fact:  
According to a study by the United States Geological Survey, it has been determined that there is a 46% chance of experiencing a 7.5 or greater earthquake in the next 30 years in the southern half of this State. http://pubs.usgs.gov/fs/2008/3027/. Therefore, we highly recommend that you secure an earthquake policy as your homeowner's policy does not cover such peril.

Myth # 2
"Earthquake insurance is too expensive" !

Fact
Premium for earthquake coverage can vary dramatically based on age of home and location. However, for most people, earthquake coverage is extremely affordable! We can provide a quick and reliable quote instantly!

Myth #3
"A large Earthquake will bankrupt ALL Insurance Companies"

Fact
There are many non-admitted companies offering earthquake coverage that may not have enough surplus to cover a large event. However, currently, the CEA has estimated to have over $9 Billion in claims-paying capacity and the CEA is not permitted to file bankruptcy!

Myth #4
" If we have a large Earthquake, I can absorb all the costs myself"

Fact
Have you really considered all of your "out of pocket" expenses if you had to rebuild your home after a major earthquake?

Consider the following the following:

• Cost to repair or rebuild your home. Will you have cash on hand? Will you be eligible for an Home equity   loan for your devalued home? How will the unrepaired damage affect resale?

• Expenses incurred by you and your family for moving out your home as it's no longer safe to be there.

• The cost to rent another location will be higher due to supply and demand.

• FEMA may not be able to help unless you qualify


Your home is your #1 investment and that is why you should seriously consider the benefits of a tailor made Earthquake insurance policy offered through the California Earthquake Authority (CEA).

Farmers Insurance is a subscribing member of the CEA, which can offer you deductible options of 10% and 15% as well as increased coverage for Additional Living Expenses and Personal Property Coverage.

Now that we have covered some facts and myths about Earthquake coverage, please give us a call so that we can prepare different options for you to review. There is no obligation to buy. Our goal is to educate you and present you with the options available to you!