All
Shook Up Over Earthquake Insurance
By: Laura Mirsky
laura@biznetonline.com
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All
Shook Up Over Earthquake Insurance |
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On the morning of January 17, 1994, while you were shaken from your sleep, California felt the devastating effects of the Northridge Earthquake. The insurance industry was also jolted off it's foundation. This earthquake proved to be one of the most costly natural disasters in the United States history... Many insurance companies put a freeze on writing new homeowner policies, while others left California altogether. This was due to the fact that laws were enacted to ensue that all companies offering homeowners policies also offered earthquake coverage. The tremendous exposure forced the companies to review their position in the marketplace.
Since then, the "California Earthquake Authority" Plan was introduced which enabled insurance companies to lift the moratorium and once again offer homeowners insurance.
This plan, known as the "C.E.A." Plan, is available for all new homeowner policies. If the insured waives the earthquake coverage he or she must wait two years for the coverage to be offered again.
There are a few companies still offering the earthquake coverage as an endorsement to their homeowner policy. These companies may have a very small exposure in the state of California.
Unfortunately, in California, earthquakes are a reality no one can ignore. Protect your home and your family!