The popularity of earthquake insurance has skyrocketed over the last year and it's all thanks to cheaper policies.
More than one-million California residents are now covered by some kind of earthquake insurance according to Chris Nance with the California Earthquake Authority.
"More people are paying attention to the risk they face, relative to potential for damaging earthquakes."
At least 75,000 policies have been added so far in 2017, bringing the total above the one-million mark. The California Earthquake Authority says the increase in policies is thanks to cheaper policies as well as more deductible options. Policies don't just have to be for those with a single-family home either. Nance says renters, condo-unit owners, and mobile-home owners have also been signing up for earthquake insurance in droves.
"The California Earthquake Authority recently has made available policies that make more sense for people, bring more value to recovering from earthquake damage and we're seeing dramatic increase in takeup as a result."
However, you can't just sign up for earthquake insurance on a lark. You must already have a homeowners or renters insurance policy in place before you can by earthquake insurance.
"Coverage from the CEA is available only for residential coverage, and you have to have a home insurance coverage policy first in place, whether you own or rent. With that policy in place, then the CEA policy can be purchased to run alongside that," Nance said.
Knowing what to do before, during, and after an earthquake can make all the difference in the world. Nance says when an earthquake strikes, there's nothing left to do but hold on.
"The first thing you need to do when the ground shakes is drop, cover, and hold on. Wait til shaking to stop before leaving the building. Secondly, before an earthquake strikes, talk to a home insurance agent and learn about what you have at stake."
If you're interested in pricing out a plan, you can run the numbers for yourself at the California Earthquake Authority's website here.
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