EARTHQUAKE INSURANCE - WEIGH THE RISK AND COST

The San Andreas – Locked, Loaded and Ready to Go

Seismologist warns the “Big One” is Imminent

Susan Williams   

In his recent keynote at the National Earthquake Conference, Thomas Jordan, director of the Southern California Earthquake Center declared that, “The springs on the San Andreas system have been wound very, very tight. In particular, the southern San Andreas fault looks like it’s locked, loaded and ready to go.” The Pacific plate is slipping northwards along the North America plate, taking cities such as Los Angeles, San Diego, Santa Barbara, San Francisco and Monterey along for the ride, while other California cities sit directly in the fault zone.

A 2008 USGS report based on a simulation of a magnitude 7.8 earthquake on the southern San Andreas Fault warned that such an earthquake could cause more than 1,800 deaths, 50,000 injuries and $200 billion in damage along with severe, long-lasting disruptions.

So what can homeowners do to protect themselves and their property against the next “big one”? First, they should investigate their level of risk. Since typical homeowner’s policies don’t cover earthquake damage, an additional earthquake policy is a smart first move if the property is within a high-risk area. In the past, some homeowners assumed that earthquake coverage was too expensive. However, what many may not know is that rates for earthquake policies from the California Earthquake Authority (CEA) have come down and now include more deductible flexibility.

Retrofitting older homes to mitigate earthquake risk can potentially lower insurance premiums. Simple things like making sure the strapping on water heaters are secure, anchoring large bookcases, TVs, and pictures to the wall and knowing where and how to shut off gas and water valves can help homeowners protect their home and belongings.

Finally, everyone should know what to do during an earthquake – DROP! COVER! HOLD ON! Every at-risk family should have an earthquake plan that includes who to contact and where to meet if an earthquake hits.