Most Californians Lack Earthquake Insurance
In the aftermath of the 5.8 magnitude earthquake that shook the east coast on Tuesday, insurance organizations are discussing the nonchalant attitude many Californians take toward earthquakes on the west coast.
The east coast earthquake in Virginia was felt as far north as New York, Rhode Island and Toronto. Afterwards, many west coasters took to social media websites to remind the nation of how much more calamitous earthquakes are in California. However, few Californians are actually prepared for a disastrous seismic event.
Despite being a hotbed for destructive quakes of an upwards of 6.0 in magnitude, only 12 percent of California homeowners have earthquake insurance.
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California is home to several fault lines, including the infamous San Andreas Fault, and the Hayward Fault that was the culprit behind several small earthquakes on Wednesday.
The quakes, ranging from 2.3 to 4.4 in magnitude left Californians unfazed, but many are not prepared for the very real possibility of earthquakes of a more dangerous magnitude.
Not being accordingly insured could leave many Californians in financial strains, in the event that an earthquake causes damage to their home or property.
“Living in California without earthquake insurance is like going to the beach without sunscreen: You’re completely exposed and you could get burned,” said Candysse Miller, executive director of the Insurance Information Network of California.
The Insurance Information Network of California notes that many Californians feel that damage from an earthquake would not affect them too badly, or in the event that it did, they'd receive aid from the government.
However, Federal aid is not offered for all disasters and when it is, it is usually in the form of low-interest loans which must be repaid.
Homeowners could also find themselves in bankruptcy if they decide to “walk away” from their property.
According to the San Francisco Chronicle, a brick home in the Pacific Northwest would cost $3 to $15 per $1,000 to insure. Because the area is more prone to earthquakes, insurance tends to be higher there than in the rest of the U.S.
The INNC recommends that California homeowners have their property retrofitted and reinforced against earthquakes, whether or not they have insurance. It recommends assessing finances and always having savings available in case of emergency. If homeowners do decide to acquire earthquake insurance, it urges that they shop around for the best policy.
