Earthquake insurance is the only type of insurance that covers
home repairs after an earthquake, said Gennaro Filice, a sales
representative with AAA
’s Gilroy branch. Only about 15 to 20 percent of customers in
Filice’s office that serves the South Valley have earthquake
insurance, he said.
Earthquake insurance is the only type of insurance that covers home repairs after an earthquake, said Gennaro Filice, a sales representative with AAA’s Gilroy branch. Only about 15 to 20 percent of customers in Filice’s office that serves the South Valley have earthquake insurance, he said.
“That’s much, much too low for this area,” he said. “The question is not if it’s going to happen, but when it’s going to happen. If you live around here long enough, you know it’s a matter of time.”
By law, insurance companies in California must offer earthquake insurance when customers purchase a brand new policy, Filice said.
While some private insurance companies offer earthquake insurance independently, most often renters and owners in the state purchase coverage through the California Earthquake Authority, a collection of insurance companies pooling their resources.
The only coverage homeowner’s insurance provides in an earthquake are pieces of property that were damaged by fire sparked by the temblor, Filice said. But it’s difficult to distinguish which disaster damaged which pieces of property.
Filice said the average premium for earthquake insurance is between $600 and $700 per year but can vary greatly depending on the age and size of the building in question.
“I often tell people, ‘You’d probably pay about $50 per month for earthquake insurance. You could go out and have a nice dinner for that much.
What’s more important?’ ” Filice said. “If you’d suffer a financial hardship if an earthquake caused major damage, it’s probably a good idea to think about getting it.”
