A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
Is
Earthquake insurance a must for
Rental Owners?
Earthquake insurance in California
has been a much debated product that many homeowners are confused about. There
are few options for homeowners and the best option is the California Earthquake
authority (CEA).
The following are the primary
options for California property owners:
The California Earthquake Authority:
www.earthquakeauthority.com
(877) 797-4300.
The CEA is a part-public,
part-private company. Insurance companies like State Farm,
Allstate, Farmers and CSAA that no
longer sell their own EQ policies to CA customers are
Required by law to participate in
the CEA. The CEA is managed by a professional staff ,
but the participating private
insurance companies are involved in issuing the policies,
collecting premiums and servicing
claims.
The CEA is now the only option for
many California property owners who want to buy
quake coverage.
Arrowhead:
www.arrowheadgrp.com
(877) 233.9722.
Sells “stand-alone”
EQ coverage not
tied to your property insurance to
select customers who meet their guidelines.
GeoVera Insurance:
www.geovera.com
(800) 324-6020.
Sells “stand-alone”
EQ insurance.
This company is owned by Pacific-Select. They do not have an age requirement for
buildings.
If the company that insures your
home now is not a CEA participating company,
(Fireman’s Fund, Safeco, Chubb e.g.)
they must by law offer to sell you EQ coverage — in
most cases, a “mini-policy” with
very basic, minimal limits.
The basic coverage categories are:
Dwelling, Contents, Garages, Fences,
Pools,
Outbuildings, Building Code
Compliance, Temporary/Additional Living Expenses
.
Your buying options vary
according to:
• Where your property is located
• The age of your property
• The style of construction
• The company that is currently
insuring the property
The question property owners need
to ask themselves is if a Earthquake does major damage to their property, can
they afford to rebuild without insurance.
Deductibles range from 5 – 25 percent
The deductible is the amount deducted from the insured loss—With the CEA you do not have to
pay any portion of your deductible to receive a claim payment. And, two CEA
coverages come with zero deductible: the first $1,500 of emergency repairs for
homeowners and mobile home owners, and, if a home can't be occupied after an
earthquake, up to $100,000 for Loss of Use expenses.
Earthquake coverage has become more affordable and it may be time for those who have been holding out to take another look.
A.D. Cantelmo Property
Management Specializes in Property Management in Orange County
Ca.