Earthquake & Flood
Earthquake and Flood coverage are excluded under a standard Homeowners Insurance policy. Joseph Totah Insurance Services has a number of options to insure for these perils.
Earthquake
Most homeowners in California live with a high earthquake risk. Risk management for earthquakes can be accomplished in a number of different ways:
- Insurance
- Seismic Engineering
- A Reserve Fund
- A combination of any of these
To use the earthquake insurance option, you can accept the offer of earthquake insurance that insurance companies are required to offer when you first take out your property policy. By law, they will also re-offer this coverage every two years. To use this option, you must accept the offer, pay the premium, and have an updated policy that shows the coverage is activated. We can also discuss with you the advantages and disadvantages of the companies we represent that specialize only in earthquake insurance and that can often provide more favorable rates. We can also provide you with coverage through the California Earthquake Authority (CEA) though an affiliation with one of our companies. To have the option to elect coverage with the CEA, a homeowner must have his or her primary coverage with the affiliated company. We know all these options well and can discuss with you the best terms available for your individual situation.
Flood
If you live in a flood zone and you have a mortgage on your home, you are required to have flood insurance. The Federal Government is the ultimate insurer for flood damage, but private companies such as Travelers Insurance and others have an affiliation with the National Flood Program to provide this coverage. We offer this coverage through our affiliation with two private companies, and the rates with these private companies are identical to the rates through the National Flood Program.
If you do not live in a flood zone, you can still purchase flood Insurance. Why would you want to buy flood insurance if you’re not in a flood zone? First, because floods sometimes occur in areas that are not in flood zones; the City of San Mateo gets between 20 and 25 claims per year from residents who do not have flood insurance, and the City takes responsibility for only 30-40% of these claims; the remaining 60-70% of claimants must pay for their own repairs, which would have been covered by a flood insurance policy, had one been in place. Second, damage from floods tends to be major damage, requiring replacement of walls, floors, and downstairs furniture and appliances. If you are not in a flood zone, protection from this kind of damage can cost less than $300 per year.