Earthquake insurance

irvinehusky

irvinehusky

New member
Does anyone purchase earthquake insurance any more?

If you do, why?  For me, I cannot "afford" the total loss of the house.

If not, what do you plan to do "when" the BIG ONE hits?  I realize that when the roof and walls come tumbling down we would have bigger worries than earthquake insurance but...

Any alternate ideas for protecting against earthquake related losses? 
 
No insurance is needed. In order for a house to fall down there must be room for it to sway first. The building technique in Irvine is called the super pack structural system. The entire village is really one super structure that gives it strength and rigidity.
 
freedomcm said:
irvinehusky said:
Any alternate ideas for protecting against earthquake related losses? 
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100% financing and walking away

Its the 'merican way
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Fifteen years ago, I would have laughed at your "joke".  But, sadly that's probably what the majority(?) of the
people would do now, without much guilt.  The mindset has definitely changed.
 
irvinehusky said:
Does anyone purchase earthquake insurance any more?

If you do, why?  For me, I cannot "afford" the total loss of the house.

If not, what do you plan to do "when" the BIG ONE hits?  I realize that when the roof and walls come tumbling down we would have bigger worries than earthquake insurance but...

Any alternate ideas for protecting against earthquake related losses? 
Click to expand...

I do not purchase earthquake insurance.  The premiums are stupid high for the coverage you get against the 'chance' you house may be severely damaged.  The deductible is a total joke and is one of the main reasons I don't bother.
If there was an earthquake to significantly damage your house, the entire region would probably be devastated and the government would proably step in with some assistance. 
Either way, I would be more worried about family safety and trying to fend off the radiation zombies in the weeks that follow.
 
Exactly.  Just chill because this is California, one of the most liberal states. There's a lot of free Government cheese out there.

davenlei said:
irvinehusky said:
Does anyone purchase earthquake insurance any more?

If you do, why?  For me, I cannot "afford" the total loss of the house.

If not, what do you plan to do "when" the BIG ONE hits?  I realize that when the roof and walls come tumbling down we would have bigger worries than earthquake insurance but...

Any alternate ideas for protecting against earthquake related losses? 
Click to expand...

I do not purchase earthquake insurance.  The premiums are stupid high for the coverage you get against the 'chance' you house may be severely damaged.  The deductible is a total joke and is one of the main reasons I don't bother.
If there was an earthquake to significantly damage your house, the entire region would probably be devastated and the government would proably step in with some assistance. 
Either way, I would be more worried about family safety and trying to fend off the radiation zombies in the weeks that follow.
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Since I'm a new homeowner, I looked at earthquake insurance also. For me it made no sense because of how high the deductible was, which was much higher than my downpayment. Maybe in 5 years I will look again and see if it's something I want to do.
 
Wouldn't it be more likely that the insurance companies go belly up if a massive earthquake that totals Southern California occurs?
So unless you are in a localized area that is hit hard - perhaps thats the only situation that would apply for not having insurance.
 
ch said:
Wouldn't it be more likely that the insurance companies go belly up if a massive earthquake that totals Southern California occurs?
So unless you are in a localized area that is hit hard - perhaps thats the only situation that would apply for not having insurance.
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I agree.  I recall some article I read that stated if the Greater L.A. area and surrounding counties were severely affected by a massive earthquake (the big one), the insurance liability would be so massive the insurance companies (and re-insurance companies) would file bankruptcy to limit their liability to policy holders (i.e. get a judgement to pay cents on the dollar for claims).  So the insurance companies get to take your full premium and then shaft you when it comes time to make you whole.
 
I guess the moral of this story is that when it involves real estate, if you try to do things (loans, insurance, etc.) the "right" way, you always get screwed?  ???

O.K., I think I'm starting to understand the new "American" way of thinking.  :)
 
irvinehusky said:
I guess the moral of this story is that when it involves real estate, if you try to do things (loans, insurance, etc.) the "right" way, you always get screwed?  ???

O.K., I think I'm starting to understand the new "American" way of thinking.  :)
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Just wait for your personal bailout if the big one does come and damages your home.  That's the American way now.
 
I was just looking at this insurance too.

The minimum deductible they provided me is 15% of the assessed value, not the market value, for one thing. For me I would be paying almost $1,000 a year to enjoy a ridiculous $93,000 deductible. If I try to picture what $93,000 of damage would look like, and the type of earthquake we would need to cause it, I think I would have more pressing issues like water, food and bullets.

I decided not to get the insurance because the deductible is too high, the premiums are too high, and if I have that much damage...I'll have bigger problems.

I also read a few articles that said our liberal betters up north are trying to put all Americans on the hook for earthquake damage in California. They want to pass a law where the Federal government would guarantee bonds that could be issued in order to pay for exceptionally high amounts of damages/claims. Default of course, would put every American taxpayer on the hook to rebuild my house.

Well...I don't like paying for flooded homes on flood plains in Missouri any more than I like paying for hurricane damaged vacation homes in  Cape Cod, so why should the rest of America be on the hook to rebuild my toppled house in California? I really hate the Federal system. It's all about making everyone pay for everything. We all become slaves to each other.

They take money from me to rebuild a flooded home, then take money from the flooded home owner to rebuild my earthquake damaged home, and then we both vote for that politician for "helping" us? The new American way. So Stupid.
http://www.insurancequotes.com/insurance-earthquake-california/
 
I understand that the people who got Liar Loans and financed their homes 100% (if they're not foreclosed by now) would easily decide to walk away.  But I assume most people now have to put down 20%?  Would you walk away if you had 20% in your home?  30, 40, 50%?  What about you all cash buyers?  How much skin do you have to have in the home before you reconsider your strategy?

 
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