Californians’ Afforded New Insight into Dangers of Not Signing up to Earthquake Insurance

Californians’ Afforded New Insight into Dangers of Not Signing up to Earthquake Insurance

- in Home Insurance, News
Golden Gate Bridge California

Whilst it may not necessarily concern homeowners here in the UK (well, not quite on the same scale as the more imminent danger of flooding, let’s say) it’s still interesting to learn that over in America earthquake insurance policies (which in some states poses as much if not more of a now-traditional risk as our propensity for floods to wreak havoc) aren’t taken up as often as you’d imagine where they are offered.

In fact, and according to one US news source, the majority of Californians would be lost for more than just words in the event of a quake destroying their homes, as a direct result of not having any insurance cover in place to counter the financial destructive effects which come in the immediate wake of substantial tremors. Which is somewhat surprising given the California is geographically situated on the world famous San Andreas fault line.

According to the California Earthquake Authority, only 20% of homeowners (including rental tenants) in San Diego possess earthquake insurance, however if price was hitherto the main reason for avoiding splashing the cash on earthquake insurance policies for many Californians, then henceforth they could be more inclined to protect their assets, courtesy of newly competitive premiums being on offer.

Perhaps raising physical and visible awareness with reference to the effects of earthquakes in a typical domestic setting might do the trick in providing would-be earthquake insurance policyholders with a realistic scenario and ergo motivating them to safeguard their properties going forward. Taking this to the required extremes, a company called Safe-T-Proof has demonstrated just what if feels like for homeowners (and tenants) to be caught up in a quake, via its dedicated simulator.

Brand New Quake Simulator and 10% Reduction in Insurance Premiums Set to Appeal to Residents Still Sat on the Fence

Based in Sorrento Valley, the unique Safe-T-Proof sim affords people the opportunity to experience an earthquake up close and personal by reimagining what a powerful 8.4 magnitude quake would feel like, and moreover provide them with an insight into the resultant damage it could cause to their uninsured homes.

One of the people behind the Safe-T-Proof concept is Michael Essrig, who found himself in the thick of the action back in 1994 and the Northridge quake.

Thankfully he had an earthquake insurance policy in place to help him pick up the financial pieces and rebuild thereafter, yet the event itself inspired him to educate others who perhaps didn’t appreciate the importance of arranging the same protection. Today Essrig uses the simulator to encourage both residents and businesses to prepare themselves beforehand by giving them a virtual earthquake experience all of their own.

Thankfully the Californian Earthquake Authority has put measures in place to reduce earthquake insurance premiums by an average of 10% across the state, whilst simultaneously rolling out new options which make it easier for those residents living in homes, apartments, rental properties and even mobile homes to secure more competitively priced coverage.

The website ensures that homeowners/renters receive a valuation on their property in exchange for keying in their current abode, which then allows them to alter their individual coverage options to fit in with their budget requirements. Insurance costs are habitually based on the homes’ proximity to a recognized fault line and the age of the building in question. People who rent can also choose a plan to cover their belongings and expenses if they need temporary housing.

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