Earthquake and Flood Insurance: Hidden Gaps in Your Homeowners Policy

Living in California can often mean enjoying beautiful weather, but it also may require being prepared for significant natural disaster risks. In the case of homeowners, many are often surprised to learn that their standard home insurance policies leave out critical financial protections against certain nature-related incidents. The team at JSW Insurance can help you understand and address these limitations.

What Your Homeowners Policy May Not Cover

Most standard homeowners insurance policies do not include coverage for earthquake or flood damage. While your policy may financially protect against fire, theft or certain types of water damage, losses caused by earthquakes and floods are typically excluded. This can leave homeowners who fail to plan accordingly facing catastrophic out-of-pocket expenses after a disaster.

How Does Earthquake Insurance Work?

California is known for its seismic activity, yet earthquake damage is not covered by most homeowners policies. Earthquake insurance must therefore be separately acquired and maintained to account for potential repair and rebuilding costs. Additionally, your coverage can typically help replace the contents of your home, such as furniture and electronics.

Why Do I Need Flood Insurance?

Flooding can happen anywhere, not just in designated or high-risk flood zones. While certain types of water damage may be covered, standard homeowners insurance does not cover damage from external water, whether it’s caused by heavy rain, overflowing rivers or storm surges. Fortunately, separate flood insurance policies available through the National Flood Insurance Program (NFIP) and private insurers can help you recoup costs related to repairing your home or replacing your belongings.

How Our Team Can Help

At JSW Insurance, we work closely with California homeowners to review existing policies, identify coverage gaps and recommend solutions tailored to your needs. Our team can help you secure earthquake and flood coverage and be prepared to successfully manage the financial ramifications of such disasters.

Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.