How to Get the Cheapest Earthquake Insurance in California

If you want to protect your home against earthquakes in the state of California, you must buy a separate earthquake insurance plan. This type of insurance is different from your standard homeowne's insurance plan. Although this coverage is not mandatory in California, if you decide to get earthquake insurance, you need to look for the cheapest coverage that will protect your assets in the event of an earthquake. Comparing different policies will help you in choosing the appropriate plan and coverage.

Difficulty: Moderately Easy

Instructions

1. Estimate the value of your home and real assets. Seek help from a professional appraiser if you are unsure.

2. Go online and search for companies that provide coverage against earthquakes. You can visit Web sites of companies providing insurance for natural hazards and calamities. Also visit the CEA (California Earthquake Authority) Web site (see Resources below) and learn more about basic and cheapest earthquake insurance. The CEA provides one of the cheapest plans for earthquake insurance.

3. Request quotes from different insurance companies and see the types of coverage offered.

4. Compare each quote on exclusions or limitations clauses.

5. Read the policy document in detail when comparing different quotes. Alternately, talk to an agent. Seek professional advice.

6. Inform your agent clearly that you want the most inexpensive earthquake insurance.

7. Check deductibles. They may vary in every policy. Increasing your deductibles will lower the premium.

8. Request partial or low coverage for your valuables and belongings within the home.

9. Opt for coverage that protects you from physical replacement costs of the home. This is also known as basic coverage.

10. Compare costs. Depending on the quality of your home, its earthquake resistance ability and its age, you are likely to receive variable quotes. Opt to live in a new home, ideally built out of wood, to get the cheapest earthquake insurance.

11. Check the location of your home. If it falls in the highest grade of seismic activity, your insurance cost will be high. Choose a location in the lowest grade to save on insurance costs.

12. Buy the cheapest insurance that provides maximum coverage on your home property and valuables.

Tips & Warnings

• Check for coverage limits. See if by altering these you can get a lower quote.
• Buy basic coverage and keep the most valuable items in the safest areas of your home.
• Check your homeowners’ insurance policy and see if by adding a rider you can get separate earthquake insurance. Talk to your agent for more information.
• Ensure that the coverage includes the remodeling or rebuilding cost of your home. Some policies don’t cover that and the burden of rebuilding the destroyed home may fall on the homeowner.