"Living in California without
earthquake insurance is like going to the beach without
sunscreen: You're completely exposed and you could get burned"
Recent
California Quakes a Reminder of Possible
Financial Aftershocks
After two sizeable earthquakes in less than
a week, Californians have had a jarring
reminder of their unsettled landscape. But
with less than 15 percent of California
homeowners purchasing earthquake policies, are
their finances on equally shaky ground?
With recent changes in bankruptcy laws,
walking away after a natural disaster may not
be a viable solution for uninsured losses.
"Living in California without
earthquake insurance is like going to the
beach without sunscreen: You're completely
exposed and you could get burned," said
Candysse Miller, executive director of the
Insurance Information Network of California.
Homeowners who decide to forego earthquake
insurance nonetheless often take few measures
to reduce earthquake losses. Most experts
recommend that uninsured homeowners retrofit
their home for seismic safety and maintain a
savings account in case disaster strikes.
While some consumers feel "it won't
happen to them," others believe that they
would receive government relief for disaster
losses. However, such a decision could carry
serious consequences.
Federal aid is not available for all
disasters and even then, it is available as
low-interest loans that must be paid back.
Homeowners who plan to "walk
away" from damaged property may find that
new bankruptcy laws leave them in a deeper
financial hole than they had expected.
Many homeowners make the decision to
purchase earthquake insurance based on the
equity they have in their homes. However, with
California's hot real estate market,
homeowners may underestimate their equity. The
contents of the home may also get overlooked.
Many homes today have expensive electronics,
furniture and collectibles that need to be
inventoried in the event that they are stolen
or destroyed.
IINC offers the following tips to
homeowners on preparing financially for an
earthquake:
Evaluate your finances. Take another look
at the equity you have in your home and
inventory your property. It may be more than
you realize, and you may decide you want to
protect your investment.
Retrofit your home. In some cases, taking
simple steps such as bolting wood-frame homes
to the foundation could dramatically cut the
risk of earthquake damage and even reduce
earthquake insurance premiums. Smaller steps
such as strapping your water heater to the
wall, bracing large appliances and
bookshelves, and using museum cement to secure
fragile collectibles can also save you money
and headaches."
Did you know Alandale can provide you
with earthquake insurance for your business as
well as your personal home
property? Please contact us for
further information.
