I was in the checkout line at the Gilman Whole Foods in Berkeley, when sirens went off and the store was evacuated. Following the 7.0 earthquake in Humboldt county on December 7, many communities within a mile of the shoreline asked residents, like myself, to move to higher ground. Thankfully, the tsunami warning was cancelled, but it was a stark reminder that you need to have a safety plan, and the right insurance coverage.
What's covered?
TSUNAMIS - A tsunami would cause flood damage, and your homeowners policy does NOT insure against flood losses. A "flood" is defined by an intrusion of ground water from the exterior of a property. A separate flood policy must be purchased for the property in order to have coverage.
Flood policies are not just for those living near a body of water. Climate change and the higher frequency of super storms has lead to an increase in homeowner losses due to flooding. We have had several clients experience flood losses due to heavy rains, many of which are in urban areas. Without flood insurance, they have to pay for the loss on their own.
Every California homeowner should have flood insurance, especially those living on a hill, below a hillside or below street level, or within 2 miles of a shoreline. Don't wait until flood season to get coverage. Many companies have up to a 30 day wait for coverage to start. You can also take the following precautions:
- Tsunami Safety Checklist for home and school.
- Check for leaks around your home. Install a water leak sensor that sends notifications of water detection to your smartphone. You can buy a water leak sensor here: Amazon - Yo Link Water Leak Sensor.
- Drainage: Look for standing water around your property, and remove any debris that might be blocking existing drains. Grade your landscape so that water flows away from your home's foundation. Groundwater intrusion from the exterior of your home is NOT covered under your homeowner policy.
EARTHQUAKES - also not covered on your homeowners policy. You would need an earthquake policy. Reasons to consider earthquake insurance:
- Repairs or replacement after an earthquake are your responsibility, as well as all your personal property.
- Loss of Use (substitute housing for homeowners/loss of rental income for landlords), could cost $100,000, or more, as construction could take 2 years, or even longer. Earthquake insurance covers your substitute housing costs or your loss of rental income, less the deductible.
- You are still responsible for your mortgage, which can be financially devastating (foreclosure, bankruptcy) when you are already paying for substitute housing and repairs.
Deductibles are now available for as high as 25%, making the premium more affordable. Better to have 75% of your losses of repair and alternate housing covered than nothing, especially since a catastrophic loss could be seven figures, or more.
Earthquake insurance is the only way to protect the equity of your home, your assets, and your income from the devastating, financially catastrophic loss of a major earthquake. Because we are an independent agent, we can look at several options for you, beyond the offer you see in your homeowners renewal.
What should you do to prepare for an earthquake? Click here to make your safety plan today: Earthquake Emergency Plan
You cannot predict when or where the next big disaster will hit. Proper insurance provides financial security, and peace of mind, so you don't have to risk it all. Contact us if you would like an earthquake or flood quote.