Recent Earthquake Near Inglewood Highlights the Importance of Earthquake Insurance

On May 7, 2025, a 3.0-magnitude earthquake occurred off the coast near Malibu, California . While this quake was relatively minor and caused no reported damage, it serves as a reminder that earthquakes can strike unexpectedly, even in areas not traditionally known for seismic activity.

California is crisscrossed by numerous fault lines, and seismic activity is an ever-present risk. Even if you haven't experienced a significant earthquake recently, the potential for future events remains. Evaluating your home's location, construction type, and proximity to fault lines can help determine your level of risk and the necessity for earthquake insurance.

Why Earthquake Insurance Matters

Standard homeowners insurance policies typically do not cover damage caused by earthquakes. Without dedicated earthquake insurance, homeowners may face substantial out-of-pocket expenses for repairs or rebuilding after a seismic event. Given California's seismic activity, securing earthquake insurance is a prudent step in safeguarding your property and financial well-being.

Recent Changes in Earthquake Insurance Policies

It's important to be aware of recent changes affecting earthquake insurance in California: United Policyholders

Coverage Limits Reduced: The California Earthquake Authority (CEA) has reduced personal property coverage limits from $200,000 to $25,000.
Increased Deductibles: Homes valued over $1 million or built before 1980 without seismic retrofitting now have a minimum deductible of 15%, up from previous options of 5% or 10%

These adjustments reflect the rising costs of reinsurance and construction, emphasizing the need for homeowners to review and understand their earthquake insurance policies.

Assessing Your Risk

Taking Action

Protecting your home and assets from earthquake damage involves more than just purchasing insurance. Consider the following steps:

Review Your Current Insurance Policy: Understand what is and isn't covered, and identify any gaps in coverage.
Consult with an Insurance Agent: An experienced agent can help tailor an earthquake insurance policy to your specific needs and risk factors.
Implement Seismic Retrofitting: Strengthening your home's structure can reduce damage during an earthquake and may qualify you for insurance discounts.
Stay Informed: Keep abreast of local seismic activity and updates to insurance policies that may affect your coverage.

Don't Wait Until It's Too Late

Earthquakes are unpredictable, and the financial impact of being unprepared can be devastating. By securing appropriate earthquake insurance and taking proactive measures, you can protect your home and provide peace of mind for you and your family.

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