Press J to jump to the feed. Should you have EQ insurance and you're a homeowner in southern CA? I'm buying a house in San Diego right now. by: Sarah Stewart. If you find out earthquake insurance is only $20 a month, maybe it's worth paying for just for the peace of mind. Lemonade’s partner is offering earthquake insurance but before I pull the trigger, I was curious if the hive mind had any experiences with being grateful for earthquake coverage or wishing they had it when they needed it. Tuesday's earthquake has many people thinking about making preparations for a large quake that could hit B.C. Sometimes the deductible can exceed the amount you are claiming for your loss. News. 19 comments . 2 years ago. I'm a renter and my personal property coverage is 30K for my clothes and odds and ends. Earthquake insurance on a wood frame home built in Napa after 1990 with an insured dwelling value of $400,000 would cost $1,191 in premiums per … You're obviously in a low risk construction type and zone. Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Well, if a major earthquake happens where you live, it'll be worth it. That is effectively $0 in loss of use. That’s true. Earthquake Insurance – Is It Worth It? If you’re in a state where there’s little to no earthquake activity, chances are insurance companies won’t even have earthquake insurance available. I recently moved to Ventura. I think if the earthquake is big enough to make you homeless, you will be homeless whether you have insurance or not. He said if an earthquake was big enough to cause damage then I would be able to get some kind of disaster loans to fix it. For example, say you purchase earthquake insurance that covers the full value of your home: $500,000. Do you have that money liquid currently? This insurance is generally limited to coverage for your home, personal belongings and expenses resulting from losing the ability to live in your home after an earthquake hits. Assuming this is a CEA policy just slide that slider over on loss of use, and remember you're looking at a $80k deductible. If you make decisions based on analysis, there’s almost no way to prove to yourself that earthquake insurance is worth it (two exceptions: see below). How Does Earthquake Insurance Work? Earthquake insurance is expensive, and many believe that it isn't worth the cost. I live in SoCal. It can double the cost of covering your home, adding an average of $800 a year in premiums. It doesn't appear in any feeds, and anyone with a direct link to it will see a message like this one. You may think that you’re covered against natural disasters under your homeowners insurance policy. While earthquake insurance typically isn’t required by a … Not to mentioned n what it would take to fully furnish a house. That could include earthquake insurance. This was probably 25 to 30 years ago and we were talking premiums of $2000 a year. We used it, it was great. Well, if a major earthquake happens where you live, it'll be worth … Is Earthquake Insurance Really Worth the Cost? The answer to whether earthquake insurance is worth it depends on several different factors, including your financial situation (what you can afford), how earthquake-prone the area you live in is, and the value of your property, house, and belongings. Press question mark to learn the rest of the keyboard shortcuts. That’s hard to say because there are so many variables to consider, and earthquake insurance policies and rules vary on a state-by-state basis. Ca native here, we haven’t had a major damaging earthquake in almost 25 years, i would look and see how close you are to sultan sea or the San Andreas fault. They said 135$/year but the coverage limits are $25000 for structure, $20000 for personal property, and $2500 for loss of use. I have a townhouse (legally classified as a condo) in San Diego, CA. I was driving through the hills last week; and there is a contractor at every single house. “A lot of it depends on how much equity you have in … On Friday, a panel of experts discussed earthquake insurance on KQED's Forum. I believe most earthquake insurance has a $100k deductible so it's not common that a claim would be higher than that. I feel like maybe I’m being stingy and perhaps I should just fork over the $135/year to be safe since it’s so little. In lower-risk areas, the cost of earthquake insurance is lower, so you won't be paying the kinds of premiums people pay in high-risk areas. If not then I would pay a higher premium then I would coming up with that amount of money during an earthquake. Chances are it you think the $130 annual is expensive, that you can't. Definitely shop around for higher coverage. No one can predict that. Remember in a catastrophic earthquake you and all of your neighbors are going to need replacement housing. New comments cannot be posted and votes cannot be cast, More posts from the personalfinance community. According to State Farm Agent Tom Plooy, the endorsement on his earthquake coverage as a homeowner is 20 percent, meaning the deductible is 20 percent of the full coverage plan. http://www.animalrn.com/ Will Lockwood is both the papa to a couple of wonderful dogs we walk and my insurance broker. That’s true! Is it worth it? Yes it’s worth it. Townhome/condo insurance covers everything walls in. Press question mark to learn the rest of the keyboard shortcuts. Depending on the policy, providers may have varying … In some areas of the U.S., the risk of an earthquake or volcanic event is almost nonexistent. The cost will depend on where your house is and how it was built. It only pays off if the damage is severe. Whether earthquake insurance is worth it or not will depend on the state you live in. So if your home is worth $300,000, your deductible would be $60,000. So, is earthquake insurance worth it? Some argue the high price of deductibles and premiums make earthquake insurance costly – and therefore not worth the money. This means that over 90 percent of Californian homeowners and renters are not covered for damage done by earthquakes. Like.... Way way higher coverages. Ive been paying about 800 a year. Wow that’s a stroke of luck. TIA. My loss of use is super low at $10k but I have family who would be able to house me outside of the impact zone, but I do have $150k in personal property, No breakables, and 15% deductible. level 1. To figure out if an earthquake insurance policy is worth it for you, start by establishing the potential risk of where you live. Is earthquake insurance really worth it? Are you talking about the insurance the HOA pays or the homeowners insurance I pay for? It can be a trade-off because the coverage can be very valuable if you live in an earthquake-prone area, but the cost is very high. Although earthquake coverage availability varies by state, many companies offer earthquake insurance or earthquake coverage endorsements as part of homeowners insurance … Earthquake insurance might not seem worth it for a few reasons: It’s pretty limited — it only covers earthquakes and volcanoes and very little proximate damage related to those disasters It’s a lot of money for something that happens as rarely as a major earthquake or volcanic eruption About 20,000 earthquakes hit in the United States every year, with up to 42 states considered at particular risk, according to … The added coverage is $135/year which is pretty cheap. x-post from r/California: I was reviewing my insurance policy to see if I need to make changes for possible flooding from El Nino, and it got me thinking about earthquake insurance again. Ive been paying about 800 a year. Is Earthquake Insurance Worth It? Can you handle cash flowing a 535k dollar claim without insurance? Is Earthquake Coverage Worth It? If your within a few miles I’d buy it, if not, i wouldn’t worry. Whether earthquake insurance is worth it for you will depend on your situation. I'm not getting it until I have a decent amount of equity. 's south coast. Earthquake coverage is especially worth considering if you live in an earthquake-prone region. While that is a big number to consider paying out of pocket, Plooy says it’s … I added earthquake insurance that same week. San Diego is not as prone to a catastrophic earthquake as L.A. or the Bay, though they did discover that the Rose Canyon fault may not be as inert as once thought. There’s no way of sugarcoating this: Earthquake insurance is expensive. Tara Mastroeni – Contributing Writer Last Updated: February 28, 2020. Your insurer may be able to advise you on what you can do to reduce the risk of earthquake damage to your home. Insurance. This came from my insurance agent. Does your current condo insurance cover “acts of god” and earthquakes listed? In my case, the earthquake insurance policy being offered by the California Earthquake Authority would cover $304,638 to rebuild my home. While earthquake coverage is an additional expense, the good news, Kiser said, is costs have come down compared to years past. Paying … Earthquake insurance is designed to protect homeowners against economic loss that occurs during an earthquake. Especially for the loss of use (that's less than 1 months rent) and personal property. Here in Utah, the number is closer to 14%. We had earthquake because it was required when we purchased and it was closer to $800 per year. How much is it? A: Earthquake Insurance is critical if you own your home outright or have a lot of equity. Posted: Feb 25, 2014 / 04:30 PM CST / Updated: Feb 25, 2014 / 05:13 PM CST. This is especially true for … How much does earthquake insurance cost? It makes sensational news to show damage and collapses, but in reality these are only a tiny fraction of buildings. My raised foundation + liquefaction zone = $632/year policy. It might be worth it anyway, but I was wondering if anyone has stories about paying for it but perhaps not getting to use it when they needed it for whatever reason. Is Earthquake Insurance Worth Getting? The extra expense of traveling a further distance to work I think might also be covered and you should account for that. Youre rate seems insanely low. It's $129 year with 15% deductible to cover... 1.5K loss of use (seems low if my house is hugely damaged and needs major repair. I've had earthquake insurance for the last 3 years. Again, I don't work in personal lines, but I believe 10-15% EQ deductible is the norm. $5k is absurdly low. Trying to get the opinion of others who like to make money work the hardest. We’ve been building earthquake proof buildings for well over a century here. But is it actually worth it to have earthquake insurance? According to the Insurance Information Institute, only eight percent of homeowners nationwide carry earthquake insurance. Youre rate seems insanely low. Look into the Brace and Bolt program for discounts once you have sufficient coverage if your house is on a raised foundation. Earthquake insurance does not cover water damage from outside your home, such as sewer or drain back-up, flood, or tsunami. Good Luck. You should always shop around, though. I live in an apartment and have $35k in PP. I think it depends on where in California you live and how close to one of the main fault lines. Earthquakes tend to cause extensive damage to the foundation, siding, and roof of residential homes. He said out of all of his clients in the 89 quake only one of them actually got any money. Earthquake insurance would only cover structural issues (that was my quote at least) and I did not think it was worth it. I assume you don't need it due to that super low premium. New comments cannot be posted and votes cannot be cast, Press J to jump to the feed. Earthquakes themselves are unpredictable, and damage from earthquakes is even more unpredictable. I hadn’t considered getting earthquake insurance until an earthquake occurred while I was under contract to buy my house. It's going to take a long time to rebuild your house if all of the builders are, well, busy rebuilding the neighborhood. Join our community, read the PF Wiki, and get on top of your finances! Sponsored . John Lane decided against buying earthquake insurance for an Eagle River home he and his family moved into three months ago. Homeowners insurance typically does not cover damage caused by certain natural disasters, but an earthquake policy could provide some financial protection if your home and property are damaged by an earthquake. How much is your premium for earthquake insurance? Many Canadian homeowners and renters may eschew earthquake damage coverage, assuming the chances of a damage-inflicting quake occurring are low. It may surprise you to know that even only 10 percent of Californians purchase earthquake insurance. I honestly dont know how you could get anything done if you didnt already have someone hired. Earthquake insurance does not cover damage to your vehicles. Is it worth it? I can't answer that as I don't work in personal lines, but it seems very low, which makes sense considering how low the limits are. Like other insurance policies, earthquake insurance plans have deductibles and annual premiums. Also most earthquake insurances have a 20% deductible, so if you just bought your house and/or have less than 20% equity in the house it is probably not worth getting EQ insurance. That loss of use won't last long, especially if there is a shortage of hotels and short stay housing available and you have to travel outside of your area to find temporary housing. My office (norCal) never writes Loss of Use lower than 10k on earthquake, and that personal property coverage seems closer to what you'd write for a college student's renters policy. If you live in an area prone to earthquakes, however, any damage from a quake won’t be covered by your homeowners insurance. No. Is Earthquake Insurance Worth It? Years ago I was told that earthquake insurance in CA wasnt worth it unless I had a two story home. It is always worth getting a quote so you can make an informed decision. That quote seems way low. Never have written earthquake insurance but I would definitely recommend lower deductibles, even at 10% it is $50k. Not everyone needs earthquake insurance. The first step could be weighing whether earthquake insurance is something worth considering. You’ll feel like you’re throwing your money away each year when you don’t see the result, but god forbid a big one hits, and you’ll be thrilled to not have that entire financial responsibility on your shoulders. You'll move into longer term housing eventually, but the first few weeks, maybe a month, you'll be in hotels or extended stay type housing, which will be far more than the average months rent for an apartment. My insurance broker said it's not really worth it (we're in San Francisco). Earthquake insurance is a type of catastrophic coverage. I would shop around for higher coverages. Flood. I've had earthquake insurance for the last 3 years. Is earthquake insurance worth it? Damage caused by an earthquake isn’t covered by a standard homeowners, renters or condo insurance policy. I own an Allstate in SoCal and wouldn’t feel comfortable quoting these coverages in my area (near the fault line in LA county.). I was reviewing my insurance policy to see if I need to make changes for possible flooding from El Nino, and it got me thinking about earthquake insurance again. As you know, there was some serious fires in the hills about 18 months ago. My Earthquake insurance was less than a 100 bucks a year, living in CA that seemed worth it to me. Because many damaging earthquakes happen in California, where home values are so high, these high percentage-based deductibles can make homeowners think twice about whether purchasing coverage is even worth it. Ask the agent for another quote with better coverage. Read on to learn how earthquake insurance works. That’s part of the reason I was considering it. Yeah I hear you. Check your auto insurance policy to find out if it covers that damage. Sorry, this post was deleted by the person who originally posted it. Is earthquake insurance worth it?