Haris Ashley
Earthquake insurance is an important consideration for homeowners, especially those in earthquake-prone areas. Standard homeowners' insurance policies typically exclude earthquake damage, leaving homeowners vulnerable to financial losses. Earthquake insurance can help cover the costs of repairs or rebuilding, but it's important to understand what it covers and what it doesn't. This type of insurance usually only covers direct damage to the property resulting from the earthquake's shaking, while indirect damage, such as fire and water damage, may be excluded. Additionally, earthquake insurance policies often come with high deductibles, which can impact the payout received. Understanding these factors is crucial before purchasing earthquake insurance to ensure adequate coverage and peace of mind in the event of an earthquake.
| Characteristics | Values |
|---|---|
| How to make a payment | Contact the residential insurance company that sold you your CEA policy—not CEA. CEA participating insurers handle all billing for CEA policyholders. |
| Payment methods | The residential insurance company that sold you your CEA policy decides what payment methods and schedules (including pay by credit card or monthly installments) are available to pay CEA policy premiums. |
| Cost of policy | Depends on factors such as the earthquake risk where you live and the coverages and deductibles you choose. |
| Discounts | Available for older houses that have been retrofitted to better withstand earthquakes. |
| Premium estimation | Use CEA’s Premium Calculator for a free estimate. |
| Retrofit | You may get a discount if you retrofit. You may be able to reduce your premium or deductible by retrofitting to make your home safer and stronger. |
| Filing a claim | Contact your residential insurer directly to start your claim. |
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What You'll Learn
Contact your insurer to start your claim
Contacting your insurer to start your earthquake insurance claim is a crucial step in recovering from the financial impacts of an earthquake. Here are some detailed instructions to guide you through this process:
Contact your insurer promptly:
It is essential to contact your residential insurer as soon as possible after an earthquake has damaged your property. Most insurance companies require you to report a claim within a specific timeframe, and delays in reporting may result in claim denial. Take immediate action by calling your insurer to initiate the claims process and receive guidance on the next steps.
Document all communication:
When interacting with your insurance company, it is important to maintain thorough records. Keep notes on every phone call, including the names and titles of the individuals you speak with, the dates and times of the calls, the content of your discussions, and any follow-up actions or commitments made. This documentation will help protect your interests and ensure a clear record of all communication related to your claim.
Understand your policy and coverage:
Before contacting your insurer, take the time to review your earthquake insurance policy. Understand the extent of your coverage, including any specific deductibles, limits, or exclusions. Knowing your policy details will enable you to ask the right questions and ensure you receive the full benefits you are entitled to under the policy.
Report all damage:
When speaking with your insurer, provide a comprehensive report of all the damage caused by the earthquake. Include both visible and potential hidden damage. Take photographs or videos of the affected areas and items before cleaning up or making any temporary repairs. This documentation will support your claim and help ensure that all necessary repairs or replacements are included in the final settlement.
Request a claims adjuster:
You have the right to request that a claims adjuster or inspector be assigned to your case. A claims adjuster is a professional trained to assess and evaluate the damage to your property. They will work with you to identify all the damage covered by your policy and provide an estimate for repairs or replacements. Having a claims adjuster involved can help ensure a fair and accurate assessment of your losses.
Be proactive and persistent:
Throughout the claims process, it is important to be proactive and persistent. Follow up on any commitments made by your insurer, and don't hesitate to ask questions or seek clarification if you have concerns. Remember that you can contact the California Department of Insurance if you feel you are being treated unfairly or if your insurance company refuses to open a claim. Your financial resilience and recovery depend on effectively navigating the insurance claims process.
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Payment methods and schedules
Some common payment methods accepted by insurance companies for earthquake insurance include credit card payments and monthly installments. For example, the California Earthquake Authority (CEA) allows policyholders to pay their premiums using credit cards or by setting up monthly installments. However, the specific payment methods available may vary depending on the residential insurance company that sold the CEA policy.
Additionally, some insurance companies, such as GEICO, offer the convenience of managing earthquake insurance policies through their partner websites. Policyholders can use these websites to make payments, add or modify recurring payments, manage communication preferences, and report claims. GEICO works with various insurance partners, including AIG, Arrowhead, Palomar, and Stillwater, and policyholders can access their respective service websites to manage their policies.
It is important to note that the cost of earthquake insurance policies can depend on several factors, including the earthquake risk in the area, the chosen coverages, and deductibles. Discounts may be available for older houses that have been retrofitted to better withstand earthquakes, and insurance companies are required to inform their customers about these discounts. Retrofitting can also help reduce the premium or deductible by making the home safer and stronger.
When making a claim, it is essential to document all the damage caused by the earthquake and report it to the insurance company as soon as possible. Most insurance companies have a time limit for filing claims, and delays can result in claim denials. It is advisable to take pictures of the damage and keep detailed notes on all communications with the insurance company.
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Discounts for retrofitting
Retrofitting your home can help prevent damage and avoid a bigger repair bill after an earthquake. A retrofit, sometimes called a seismic retrofit, involves strengthening your house to make it more resistant to earthquakes.
The California Earthquake Authority (CEA) offers premium insurance discounts for older houses that have been retrofitted to better withstand earthquakes. Older homes can be more vulnerable to earthquake damage as they often lack adequate sill plate bolting and cripple-wall bracing. Houses without adequate bolting and bracing can slide or topple off their foundation during an earthquake, requiring potentially very expensive repairs.
To qualify for a CEA premium discount, your retrofit must be completed by a licensed contractor or structural engineer who will sign off on the Dwelling Retrofit Verification Form (PDF). This form will then need to be submitted to your residential insurer. You may be eligible for a discount of up to 25% on your CEA earthquake insurance premium if your house has been properly retrofitted.
Some measures to strengthen your home against earthquakes include:
- Bolting your house to its foundation
- Bracing the chimney
- Bracing the water heater to a wall
- Installing automatic gas shut-off valves
- Using plywood to strengthen cripple walls
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Claims FAQ
Earthquake insurance covers damage to your home, personal belongings, and additional living expenses if you need to temporarily live somewhere else after an earthquake. It also covers damage to other buildings on your property.
Earthquake insurance is not required by law. However, if an earthquake destroyed your home and you didn't have coverage, the financial result could be devastating. If earthquakes are common in your region, earthquake coverage would be beneficial.
To file an earthquake insurance claim, call your insurance provider and report visible damage. It can be difficult to evaluate the extent of the damage, so it might be worth getting a home inspection, especially if your home is old. Make sure that all the damage you can see is listed in your claim, as well as all the possible hidden damage.
You should report damage to your insurance company as soon as possible. An insurance company can deny claims that are not reported within one year.
Once you have reported damage to your insurance company, they must open a claim. They will then assign a claim adjuster to your case. This person is trained to assess the damage to your property. Set a time as soon as possible for the claim adjuster to come out and inspect the damage.
An insurance deductible is the amount of money that you, the policyholder, pay out of pocket before your insurance company covers the rest. For example, if you have a $1,000 deductible and sustain $10,000 worth of damage, you will pay $1,000, and your insurance company will pay $9,000. Your insurance company will subtract the deductible from their payment.
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Privacy policies
Firstly, when purchasing earthquake insurance, you will typically be dealing with a residential insurance company that is a member of the California Earthquake Authority (CEA). These companies process CEA policy applications, renewals, bill payments, and claims. Therefore, it is crucial to review the privacy policies of the specific residential insurance company you are working with. Understand how they collect, use, and protect your personal information, including payment details.
Additionally, the CEA itself may have privacy policies in place that apply to your personal information when you purchase a policy through one of their participating insurers. Review the CEA website or contact them directly to understand their privacy practices. This includes understanding how they secure your information and whether they share it with any third parties.
Moreover, privacy policies may vary depending on your payment method. For instance, if you choose to pay by credit card, the privacy policies of the credit card company or payment processor may come into play. Review the privacy statements provided by these entities to understand their data practices, including data retention, security measures, and your rights regarding your personal information.
Finally, if you are using the services of an insurance broker or agent, such as First Tech Insurance Services, their privacy policies will also apply to any personal information you provide during the earthquake insurance payment process. Ensure you understand their data handling practices, including whether they share your information with affiliates or partners and how long they retain your data.
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Frequently asked questions
You can make a payment by contacting the residential insurer that sold you your policy. They will decide what payment methods and schedules are available, which may include credit card payments or monthly installments.
Yes, GEICO offers earthquake insurance policies through non-affiliated insurance companies. You can use their website to select your policy provider and view your payment options.
The cost of your policy depends on various factors, including the earthquake risk in your area and the coverages and deductibles you choose.
Yes, you may be eligible for a discount if you retrofit your home to make it stronger and safer during an earthquake. Contact your insurance provider to inquire about specific discounts.
Contact your residential insurer as soon as possible to initiate the claims process. Document all damage with photographs and take notes on your communications with the insurance company.
Note: These answers are based on general information and may not apply to all insurance providers or specific policies. Please refer to your insurance company for detailed instructions regarding payments and claims.
