Earthquake Insurance

[margerymermaid]

I'm not sure if this topic fits in here... but I am considering purchasing earthquake insurance for my house. I live in the Pacific NW and we are due for one. (an earthquake) Have other people considered this? Has anyone else purchased earthquake insurance? I use State Farm for my car/house/business and they've quoted me a 15% deductable. What are peoples opinions on this? Am I being overly cautious? I own my small house outright and I hate to think of losing it if and when the day comes.

[Zoebird]

I think if you live in a quake zone, then it's wise -- just like buying flood insurance is wise in a flood zone.

We live in wellington NZ, and we get little shakes all the time (ring of fire and such), and our business is insured for quakes.

[iris lily]

We have earthquake insurance and I am in St. Louis. At the time we got home insurance it was included. Now, it's a separate rider, I don't believe they are issuing it as part of the basic package.

We had an earthquake here last fall. I didn't feel it, but DH felt it.

[HumboldtGurl]

We used to live in the quake capital of the west. First L.A., next San Francisco and then Eureka, CA, just south of Oregon on the coast. Because the price was absolutely astronomical, we never had earthquake insurance but the thought of losing it all was always in the back of my mind. I've been through several good ones including a 5.5 and saw local homes fall apart.

In all those years, I just figured that if our house was destroyed, we would hope that FEMA would aid in the rebuilding (silly me!). If the policy was more affordable I would've done it but it would've added something like $800 onto our yearly premium that was already well over $1100.

I'm glad I don't live in quake zones anymore!

[Bronxboy]

I'm not sure if this topic fits in here... but I am considering purchasing earthquake insurance for my house. I live in the Pacific NW and we are due for one.
Several questions.
Is your house all wood-frame, brick/stucco veneer, or brick and block?
Are there masonry or other larger buildings that could drop debris onto it?
What would your coverage be for a fire or flood caused by a quake without earthquake coverage?
Are houses close enough together that fire would easily spread from house to house?
Is there natural gas on your street? Seems to be a cause of post-quake fires.

All those things enter into your relative risk. A brick house next to other brick houses, I'd say yes. A single story frame house on a cleared acre with an asphalt roof and no gas lines nearby, I might take the risk without coverage.

Insurance should be mostly for things you can't afford to have happen, like earthquakes--not really for fender benders. You could raise deductibles on other house/car coverages to make it more affordable.

[JaneV2.0]

I've been through a few quakes here (one 7.0) with only a drywall crack, and there are no gas lines (thank heavens) or brick buildings around. My poor ragamuffin house is at least sturdily built, so unless it falls off the bluff and into the arroyo I'm all good.

ETA: I don't have earthquake insurance and have no plans to get any.

[margerymermaid]

Thanks for your responses! Bronxboy, yes, my house is all wood frame, and one story. There aren't larger buildings that could drop debris onto it. Yes, houses are close enough that fire could spread.. there's another one story nearby. I'm not sure if there's a gas line on my street, but i don't have gas. I'll have to find that out. The cost to me for earthquake insurance would be $150 more per year, which I thought was reasonable. And I live on a slight hill which makes me lower risk for flooding.

[morning girl]

When we bought our house 14 years ago, our insurance agent recommend we have earthquake insurance since we have quite a bit of equity. We are in the northwest too and it is nice to know if the big one happens we will not lose all.

[HumboldtGurl]

The cost to me for earthquake insurance would be $150 more per year, which I thought was reasonable.

Whhhaaaaa? Wow, that is WAY cheaper than we were quoted. For that price I would get it as long as the deductible is reasonable. I think that was another one of the issues we encountered, the deductible was several thousand $$, and that the money we would get wouldn't be enough to rebuild our 3700 sq ft Victorian to today's standards. So be sure to investigate it thoroughly.

[redfox]

I live in Seattle, and we definitely bought earthquake insurance as a part of our homeowners. We got it 12 years ago from SF too, and I recall a 10% deductible... I wonder if that has changed. I think it's a good idea in the PNW. Where do you live?

[San Onofre Guy]

The key to me is what is the soil structure below the house (liquifaction), stick built?, age (how many quakes has it been through). Essentially what is your maximum probability of loss. I am a Risk Manager and do not purchase quake for my employer as the price does not justify the risk and our structures are built well. Having said that, in the 1994 Northridge quake we had a loss of $12,000,000. Part of that loss was covered by our Boiler and Machinery insurance and the other portion was below the deductible as the structure was worth a couple hundred million.

My house built in 1962 is on clay and for the most part a raised foundation. The clay is expansive soil and I have only a few walls that don't have cracks due to the expansive nature of the soil. Will I ever buy quake for my house? Never.

Keep in mind that your mileage may vary

[jp1]

I'd second the suggestion to look into whether a fire following woild be covered. I believe CA and WA are standard fire policy states. As such I dont believe property insurance in those states. Can exclude fire caused by earthquake. All that saud, for $150 i would cerrainly buy the coverage.

[Gardenarian]

Our earthquake insurance is very expensive. I live right near San Francisco and most of our money is in our house - if we lost our house in an earthquake we'd be in real trouble.
That being said, in general, I hate the whole idea of insurance...

[Spartana]

I had earthquake insurance on my house in SoCal and I believe it was around $350/year with an approx. $15K deductible. I bought it thru my insurance company - state farm - but it was provided by the Calif Earthquake Authority. I would carry it again if I owned a house in earthquake area - especially a paid off house like mine was - as well as any other natural disaster policies that were appropriate. I will say that is one thing i love about renting - no need to buy insurance and who cares what happens to the place in a disaster!