California Renters Need Earthquake Insurance Coverage Too
The latest “Earthquake Premium and Policy Count Data Call” from the California Department of Insurance (CDI) shows that in 2016, only about 5% of California renters with residential insurance also had earthquake insurance policies.
However, data from the CDI and the American Community Survey imply that only about one-third of renters carry residential insurance, so the actual percentage of renters with earthquake coverage is substantially lower than 5%.
Bay Area cities have high numbers of renters, which means potentially hundreds of thousands would be left financially unprotected after a damaging earthquake strikes!
What Every California Renter Needs to Know About Earthquake Insurance
A low take-up among renters may be because they have misunderstandings about the value of earthquake insurance. As their trusted advisor, help them know the truth:
- Because a landlord’s insurance won’t cover anything beyond the structure of the home, it’s important that you help your renters understand they need their own policy to protect their personal property.
- In California, a renters insurance policy doesn’t cover earthquake damage, so a separate earthquake insurance policy is needed.
- With a CEA renters earthquake insurance policy, your renters can choose loss-of-use coverage, which covers additional living expenses if they must live and eat elsewhere following a quake. And don’t forget to let them know this coverage through CEA has no deductible!
- Government assistance, if available, is limited. The maximum FEMA grant available in 2017 was $33,300, but the average FEMA grant awarded after the 2014 Napa quake was just $2,670.
- CEA policies for renters are very affordable—as low as $35 per year ($2.92 a month)—and premiums depend on the earthquake risk where a renter lives and the policy coverages, limits and deductibles they choose.
Help Your Renters Get Earthquake Insurance Today
You can help your clients find the policy that best meets their needs and budget by using our premium calculator to estimate their premium costs.