Many Napa Wine Country homeowners – and those all over the country who heard about the recent earthquake in Northern California – are asking themselves and their insurance agents, “Should I have earthquake insurance?”
Only about 1 in 10 consumers in California carries earthquake insurance; the vast majority through the California Earthquake Authority
. Among that group, only 6% of Napa residents are protected. The problem many homeowners see is the deductible, which is about 15% to replace one’s home. When you’re talking about a million dollar home, that 15% can be substantial.
Homeowners insurance generally does not include earthquake coverage. As a result, if your home is damaged by a quake, you’re probably not covered. You must have a separate earthquake policy.
While all states have some level of earthquake risk, the U.S. Geological Survey has identified 42 states that have a reasonable chance of experiencing damaging ground shaking from an earthquake Of course, California is at the top of that list.
The Napa quake caused an estimated $1 billion in damage.Most of my high-end clients report that their homes and wineries are in good shape; with only minor damage, if any. And even if they did sustain major damage, they are not worrying. The question “Should I have earthquake insurance?” doesn’t enter their minds because most of them do have it.
The bottom line is homeowners must weigh the pros and cons of earthquake insurance for themselves. Most of the beautiful homes here in the Wine Country are built extremely well and survived the recent temblor unscathed. So, if you are looking for the perfect home in Napa or Sonoma Valleys, please contact me at 415.516.3939 or email me at Ginger@GingerMartin.com. Meantime, take a look at my website and make sure to check out my Facebook and Twitter to stay up-to-date on the latest news for both homebuyers and sellers.