Everyone Takes Some Risks with
What They Own... the Question Is:

How Can You Best Protect Your Family
and What You Own

Before we start discussing insurance, which is designed to protect your assets and your future, there's something you should know. All of us take some risks with our assets.

There's really no way insurance can protect us from all the "What ifs?" and, even if it could, few of us could afford the cost to buy insurance for every possible calamity. Some of us are willing to accept a lot more risk than others are.

* Example. California was basically ground zero in the United States for earthquakes in the latter part of the 20th century. A major one hit the Bay Area in 1989 and an even more major one struck the San Fernando Valley in 1994.

Yet, most Californians, even those in and around San Francisco and Los Angeles, don't have earthquake insurance. (The standard homeowners policy does not cover damages caused by quakes.) Most Californians, about 80%, have decided to take the risk that their residences will not be damaged or destroyed by an earthquake.

Most people who live on hills or cliffs elect to take the risk that their homes won't slide down the hill, cliff or embankment. The standard homeowners policy doesn't cover such losses, either. Landslide insurance it usually is called "difference in conditions" is very costly and few insurers are willing to provide such coverage.

In the last two paragraphs, there were references to homeowners deciding or electing to take the risk of damage to their residences caused by earthquakes or landslides.

* But how did these people come to these decisions? (And how should you make your decisions?)

Consumer TIP: THE BEST WAYS TO KNOW WHAT KINDS OF AND HOW MUCH PROTECTION YOU SHOULD HAVE ARE:
  1. Be a SMART consumer. This book is designed to help you do just that.
  2. Routinely consult the advice of a professional property & casualty insurance agent.

Did they determine that the insurance was too expensive? Did they reach the conclusion that the likelihood of either disaster was too low to justify paying for insurance?

Or, more likely, did they even know that they don't have coverage for earthquake and landslides? It's a "homeowners" insurance policy, after all. Why wouldn't it provide coverage for any disaster?

How many of these people actually knew they were "assuming the risk" for earthquake and landslide losses to their homes?

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