San Francisco Home Insurance 

Ever since the big quake of 1906, most people would expect that San Francisco home insurance policies would include clauses dealing with earthquake damage. This is not the case at all, as earthquake and earthquake related home damage is covered under a separate policy. Especially in recent years, the trend has been for fewer and fewer homeowners to actually opt for earthquake insurance, as the perception has become that these policies are too expensive and do not cover enough.

San Francisco Home Insurance: Advice

In actual fact, the danger of major earthquakes happening in San Francisco home insurance areas is not significantly higher than in other parts of California, and currently the East and South Eastern regions of the USA are thought to be at greater danger of major earthquakes in the foreseeable future. Earthquake prediction is still a science that deals in only possibilities and not certainties, but what is certain is that areas such as San Francisco, where the assumed earthquake danger is higher have much better systems in place to limit the actual damage caused to homes if a severe quake were to hit. The majority of buildings are more suitable for resisting earthquake damage and if you ask anyone in San Francisco what they should do in the case of a quake, they know the answer. 

Is it therefore necessary for San Francisco home insurance to include earthquake clauses? Should homeowners purchase expensive earthquake insurance policies? In many cases it is compulsory, as a requirement of mortgage agreements and district regulations, but only around 30% of houses are actually covered. What reasons are there for this apparent laissez faire attitude, and are they based on actual reality?

First to consider is the assumption that earthquake cover doesn’t really cover much. San Francisco home insurance policies cover fire, structural damage, liability and the like so why get earthquake insurance. The reason is that none of the standard San Francisco home insurance policies will cover this kind of damage if it is proven to be directly caused by seismic activity. If you have an earthquake, only earthquake cover will actually be able to be claimed.

Secondly, the idea that earthquake cover is excessively expensive should be looked at – it simply isn’t true. Average San Francisco home insurance is based on house prices of about $600,000 with standard San Francisco home insurance costing an average annually of $700 which is considerably cheaper than most of the USA in proportion. Earthquake insurance at an average $50 extra should be therefore considered a fairly good deal.  San Francisco home insurance companies are more likely to be attuned to earthquake cover needs.