Bay Area
Bay areas have huge threat of an earthquake with magnitude 6.8 or greater in next 30 years. The US Geological Survey has made a report on it that states the 99 percent area of USA is situated in a region where earthquake can strike at any time.
It means that out of 100, 99 percent of USA is under threat of an earthquake that can strike at any time and no technology has developed till now who can stop it or alter the direction of an earthquake. But point is this that how many people have their earthquake insurance? Just 12.6 percent of California homeowners and 8 percent renters have earth quake insurance. People do not want to purchase an insurance policy they think that this is nothing but the wastage of their money or they believe that the earthquake will never strike in America? I think second one is a wrong assumption as it can strike at any time and any where in the world. I think they have their own priorities. They want to save their money for the education of their children and business. It is also correct that people have not too much money to purchase an insurance police so, they try to cut their need which they think is not necessary till now. For example Mr. Bill Clingan says
“It’s very expensive. Deductibles are high. It’s just not worth it,” said Clingan, a retiree who worked in the chemical marketing industry. “For what you get it’s not cost effective.”
But there are other people who understand that this is necessary and they have their insurance policy too, like Mr. Gridhar Vander
“We have it,” said the retired structural engineer of the earthquake insurance policy he purchased for his Walnut Creek townhouse about 10 years ago. “It can happen anytime”
Insurance companies force people to purchase policy to make their future safe. They claim that the government has not so many funds that in case of any miss hap with your home they will compensate you. They say that the government will not provide you funds to rebuild the foundations of your house so in that case, your earthquake policy will help you.
