AAA is here to help with Earthquake Concerns and Questions

With recent earthquake events that have been occurring, you may be asking yourself if you are covered or what it takes to be covered.

Does My Homeowners Policy Cover Earthquakes?

Most standard homeowners, mobilehome owners, condomimium and renters insurance policies do not cover earthquake damage. Similar to flood insurance, earthquake insurance usually must be purchased separately.

If you currently have a AAA Homeowner's policy and you want to add Earthquake Insurance, you add it as an endorsement on your current policy.

If you would like to add coverage, please contact your local AAA agent or call us at 1-800-259-8008 to review your options. Please note that your coverage will not begin until December 5, 2011.


How does earthquake insurance work?

Almost all standard home insurance policies do not cover damage caused by earthquakes.  Identical to flood insurance, earthquake insurance must be purchased separately.  Most companies will provide an earthquake endorsement off of the primary home insurance policy.  Quite frequently, earthquake coverage will have a separate loss deductible which often is much higher than your base deductible on your home policy.

AAA Insurance Company provides an earthquake endorsement which will cover damage to your structures as well your personal property caused by a registered earthquake.

Our endorsement is designed to cover policyholders from a catastrophic standpoint. 

Our loss deductible for earthquake coverage begins at 5% of the Dwelling amount of the home.  For example, a policy with dwelling coverage of $300,000 would have an earthquake loss deductible of $15,000.

Please contact your local AAA insurance office to discuss this coverage or any other homeowners insurance questions that you may have.   

Do I need Earthquake Insurance?

Many people assume their residential insurance policy fully protects them, but if you look at a typical policy, you will see it does not cover earthquake loss.  And government disaster-relief programs are extremely limited—they are designed to help you get partly back on your feet, but not to replace your home and everything you lose.  So if an earthquake strikes tomorrow, will you have the financial resources to pay for earthquake damage to your home and its contents? 

When you consider your resources, ask yourself how much of your investment in your home you are willing to put at risk.  Without earthquake insurance, how do you plan to protect that asset from the costs of earthquake damage?  If you have a typical home loan and deed of trust, did you know you remain responsible for the loan balance even if your home is damaged or destroyed by an earthquake?  

Consider taking these basic steps as part of good planning and preparation:  
1. Research the earthquake hazard in your area. 
2. Secure the contents of your home to reduce the likelihood of damage and injury.  3. Investigate how well your dwelling is designed and constructed to resist damage from earthquake motion—retrofit the structure if necessary. 
4. Analyze your finances and develop a financial-recovery plan in case an earthquake damages or destroys your home or its contents.  

There is good information available to help you.  But only you can decide if earthquake insurance is right for you.