There were recently two strong earthquakes in Southern California over the July 4th Holiday. The earthquakes had a magnitude of 6.4 on July 4th and 7.1 on July 5th. These seismic events raised a lot of questions regarding Earthquake insurance that would protect people’s homes and properties. The CA Commissioner of Insurance, Ricardo Lara put out a statement requiring California Earthquake Authority (CEA) Participating Insurance Companies to write CEA Earthquake Policies.
What does this mean and why is it important?
The Department of Insurance was receiving many complaints that the CEA Participating Insurers were refusing to accept applications for CEA earthquake coverage from their insured who already have underlying residential insurance policy with that insurance company. The CEA has confirmed to the Department of Insurance that it expects all the Participating Insurers to take applications and bind CEA coverage if requested by an insured who has an underlying residential insurance policy with the insurer. All ground-shaking and aftershocks for 15 days (includes July 5th event) after July 4th earthquake are part of the same seismic event and will be covered for the policyholders that had policies that were effective when the first earthquake happened on July 4th.
It is important to understand if a you are located in a high-risk area for earthquakes and if a CEA earthquake policy should be obtained.
Reach out to Deland, Gibson with questions, to learn more about the ins and outs of Earthquake Polices, or to see if an earthquake policy makes sense for you.