California Quakes Should Shake Up Policyholder Complacency

Los Angeles residents didn’t need to go to McDonald’s for their “Shamrock Shake” on St. Patrick’s Day when a 4.4 magnitude earthquake shook L.A. County out of bed. Two weeks later, a 5.1 earthquake centered in Orange County, Calif., was followed by over a hundred aftershocks. The late March quakes flipped cars, crumbled walls and caused rockslides, gas leaks, power outages and broken water mains near the epicenter. Authorities evacuated some hotels and residences, and other businesses were interrupted due to loss of power, structural damage or broken inventory.

The March earthquakes serve as a resounding reminder to consider your residential and commercial earthquake insurance coverage needs.

Many Californians may not be financially prepared to rebuild after “the Big One.”

While many Golden State residents witnessed the televised trail of destruction following the March 11, 2011, earthquake in Fukushima, Japan, it seems that for many Californians, a similar local disaster is unfathomable. The Los Angeles Times reports that five-out-of-six homeowners currently have no coverage for losses resulting from a quake. These homeowners may not even be aware that most California homeowners’ policies expressly exclude earthquake coverage. In areas of California, where earthquakes are inevitable, commercial earthquake insurance is an integral part of a long-term business plan. Still, many business owners choose not to add earthquake coverage.

Download: California Quakes Should Shake Up Policyholder Complacency