Insurance in Orange County California
Earthquake coverage is quite different from flood or auto insurance Orange County CA. For one thing, it was and still is, in some cases, underwritten by companies, rather than a federal agency.
This means the rates and polices differ from one company to the next.
So, it is different to compare auto insurance California from this type of coverage.
Personal Insurance Comparison
The personal auto insurance policy provides coverage for damage to your vehicle resulting from a quake under the other than collision coverage.
Many inland marine polices also cover losses caused by this event.
Since the beginning of 1997, however, Californians also have been able to purchase coverage through a state program, called the California Earthquake Authority.
California Insurance Coverage
The California automobile insurance company has seen it’s fair share of this program.
Earthquakes not only destroy buildings, homes and other structures, but also vehicles.
Yes, this is an ironic fact. It does effect the vehicle itself in a disaster.
The question is whether your car insurance policy will quick in. Read on to learn more.
CEA Insurance Policies
CEA polices are like flood policies as they are sold by carriers, but claims are paid by the them.
This was created because of the 1994 Northridge quake, which caused approximately 12.5 billion in damages, more than the industry expected to pay.
- Because California law requires companies to offer quake coverage with every home policy.
- The vast majority of companies either stopped selling new home polices in California or they scaled back tremendously for their efforts.
- Resulting in the restriction of new polices to areas unlikely to be affected by an quake.
Insurance Companies Orange County CA
Meanwhile, the state legislature is looking for methods to make coverage accessible and affordable.
In addition, they intend to encourage companies to write homeowners coverage in the state.
- After much debate back in September 1996, an act creating the was signed into law.
- It is funded in large part by companies which must pay to join, if they want to sell polices along with their own home policies.
- The rest of the up to 10.5 billion in funding comes from investors and California consumers, via their premium dollars.
Qualification of Coverage
To qualify for this coverage, a house must have been built in 1960 or later.
Or, if a house was built before 1960, it must be anchored to the foundation. It also must have a structurally sound weight bearing walls braced wit plywood or its equivalent.
The hot water heater must be secured to the building frame.
policies are bare bones, they’re certainly more restrictive than the policies companies had been offering prior to the Northridge quake.
Not finding Affordable Insurance
These polices are not cheap either. Some good news is, the policy does at least offer replacement cost coverage.
Many carriers modified their existing polices when they come up for renewal.
Restricting the coverage and raising the deductible are two common practices during the renewal term.
However, in operation, most insurance companies have simply converted their policies on renewal.
Coverage Base Policy
Quake coverage from this program or private carrier is written in addition to a home or dwelling policy.
This is important to take note of.
This is because the amount of coverage that on a home under a quake policy is limited to the amount of coverage under the policy.
Coverage for personal property would also be limited.
This policy will only pay up five thousand for personal belongings and there are restrictions to the policy.
Limits of Coverage
This policy will pay up to 1500 for living expenses, if a home becomes uninhabitable due to a quake.
It will also pay up to five percent of the insured value of the home for emergency repairs.
If an quake caused soil erosion under a home, this policy would pay up to ten thousand to stabilize the soil.
It would also pay up to ten thousand dollars to bring a home to present building code requirements while making insured repairs.
Sublets of your policy
- five thousand for chimney repair or replacement
- one thousand for computer equipment repair or replacement
- two hundred and fifty dollars for money
- three hundred for business property
Deductible of Program
The CEA policy includes a fifteen percent deductible.
So, for a hundred thousand dollar home policy.
The policyholder pays the first fifteen worth of damage to the dwelling and its contents after a quake.
Renters would only have a seven hundred and fifty do all deductible on quake personal property coverage.
Renters may want a quake policy because a landlord’s coverage extends only to the building and does not protect the belongings and personal contents inside.
Supplemental Insurance Coverage Options
The CEA also offers some supplemental coverage to the policy which include:
- lowering the deductible to ten percent
- increasing personal property coverage to one hundred thousand
- increasing emergency living expenses to fifteen thousand
The below following are not covered under this type of program.
- detached garages
- masonry walls or chimneys
It also does not cover certain types of content. These items are described such as:
- satellite dishes,
- stained glass,
- computer files,
- and glassware and china.
Rates for coverage depend on where a home is located.
When the house was built and whether it was built of frame, masonry, or concrete construction.
Masonry rates are usually higher than frame rates.
Retrofitting or bringing an older home up to current building code specifications, will also reduce rates.
There is a way to determine if certain areas are more vulnerable to a future earthquake.
These studies are researched year after year, and the behavior of our earth in relationship to the shifting of the plates.
These observations are factors to which determine the likelihood of a potential loss.
- To determine the risks in various areas and, therefore, the rates that should be charged EQE looked at every single California quake policy in force and ran it through a computer model.
- It’s not like you can go to an orange county insurance school.
- The firm considered soil types which ranged from bedrock, to silty solid you would find at the bottom of a river bed.
Age of Home
It also looked at the age of the homes in a give area because earthquake codes have changed over the years.
People have now learned what types of construction do and do not withstand quakes.
Finally, the company looked at the kind of foundation various homes had and how those homes were attached to the foundation.
- This is an important factor.
- The foundation of any base will determine the level of risk. It will also factor the cost of the risk.
- This is helpful in determining zones that are in high risk areas versus not.
Zip Codes and Territory Insurance Coverage
This makes sense. After categorizing each area by State, county and city, the next step to the process is zip codes. This is crucial since many zip codes can exist in one city.
- Now, if a city is divided into 4 zip codes but only 1 zip code is rated in a high risk zone, it would be unfair to generalize the entire city is a high risk areas.
- It’ no different if you are shopping rates for car insurance orange county or commercial auto insurance orange CA.
EQE Territory Rates for Insurance
This is why the EQE then developed rates based on ZIP codes.
A report with broken down sections with each ZIP code for different types of construction, age, and kind of dwelling were written down.
- The rates for 19 different territories range from about one dolor to one thousand dollars for coverage per year.
- To learn more, go to www.earthquakeauthority.com.
Dwelling Policy Eligibility
In order to qualify for a dwelling, a building must be a principally residential structure that contains no more than four apartment or is occupied by nor more than five roomers or boards.
- Single family homes, duplexes and triplexes are eligible for coverage on the dwelling forms.
- Town houses or row house are also eligible. The only requirement is if each building does not contain more than four units.
- Dwellings in the course of construction are also eligible for coverage.
- Permanently located mobile homes are eligible, but they can only be insured under the basic coverage form.
- Farms are not eligible. Farm house must be written on a separate form.
Farm Dwelling Coverage
Just as in a homeowners policy, an important part of the policy is distinguishing who is and not covered under the policy.
Generally, because the package doesn’t include liability coverage, its coverage extends to fewer people.
Coverage on the dwelling and other structures is provided for the named insured, and for the name insureds spouse, if that spouse is a resident of the same household.
Personal Property Insurance Coverage
If personal property is insured, the name insured and all members of his or her family residing at the described location are covered for property that they own or use.
- The personal property of guests and domestic employees may be covered by an endorsement.
- If the insured dies, coverage continues for the insured’s legal representatives.
- Until a legal Representative is appointed, a temporary custodian of the estate also would be covered.
If you need help with cheap insurance quotes CA or more coverage information on quake or car insurance quotes, contact us at 877-539-2533.
We help drivers find the cheapest full coverage car insurance in California, or business auto insurance Orange CA.
Just make sure your insurance quotes CA are for your specific need.