Earthquake Insurance

Have you taken Earthquake Insurance for your home?

  • Total voters
    33
  • Poll closed .
P

Purple

New member
I am wondering how many folks on TI have taken Earthquake Insurance for their homes. Please vote and also post your opinion on this insurance. Thanks in advance.
 
We've never bought it but there was a thread that showed it was relatively expensive depending on your zip code.

Need to go back and find that.
 
I'm definitely considering it.  It's pretty expensive, though. 

We are long overdue for a big one in Southern California.  Fortunately, when it does happen, it might or might not affect Irvine much.
 
Mine costs about $21 a month with 5% deductible.  I have other items covered such as personal property but I don't recall the breakdowns off the top of my head.

Prices vary depending on location, age of home, etc.  My friend pays about $1200 a year on her older home.

Also, rates have declined in 2016 vs 2015. 
 
Using the earthquake insurance calculator :http://www2.earthquakeauthority.com/Pages/Calc.aspx,a property up for sale in 92620 valued at around $800k, single story home, default other settings, the calculator shows a premium of $137/month or $1644 a year.
Make that "more than 1 story" for house type and the premium goes to $1970 a year.

If the calculator holds up to real life values, it seems that there could be a large spread in what you pay depending on deductibles, assessed home value etc ??

And should the current house price be used in evaluating ? If a big one hits, and the house is semi destroyed, and so needs rebuilding and putting aside any thoughts about how long would it take, will the cost of rebuilding a house actually be near to the "market valuation" of a home ? For example, would it really cost $640k ( 80% of 800k ) to rebuild a home ?
 
@SaruDeGozaru - We should exclude land value of the home when using this calculator. Only the cost of construction and everything attached to the building need to be factored in.
 
Purple said:
@SaruDeGozaru - We should exclude land value of the home when using this calculator. Only the cost of construction and everything attached to the building need to be factored in.
Click to expand...

The rare exception would be land permanently damaged, or gone, after an earthquake. In that instance, I'm not sure basic coverage nor earthquake coverage compensates you for the loss. e.g. Your house on a Laguna Beach hillside falls down the hill, along with the underlying earth, as the result of an earthquake.
 
Every year before I renew my earthquake policy, I ask my agent "are you sure this amount will be enough to replace my house in the worst case scenario"?  And, I get a "yes" every time.  I assume I could pay for more coverage but then the deductible amount would be higher as well.  So, you would pay more and need to have more damage before they start paying you which doesn't sound appealing.

Assuming my house is flattened (and I am miraculously not in the house at the time  :p ) they would need to break apart and haul away my "old" house, redo all the plumbing and gas pipes, etc.  How much would that cost and that would seem to add up quickly in that scenario.  It seems like there will only be enough to put up a shack with the rest of the money.  :p
 
From the many posts here by IHS, the construction costs are much smaller compared to the overall value of your "home".

Even in your tax rolls, you'll see land value as the biggest number.
 
Sometimes I think that if there really was an earthquake big enough to level my house, it would take months, maybe years before society as we know it is back to a normal, functional state.  Probably to level a house you need a good 8.0 and it's probably not going to be centered in Irvine which means the damage to nearby communities would be widespread.  The power grid would be out, no running water, probably couldn't safely drive on roads, business would have to shut down before they are all reinspected and deemed safe to reenter, etc. 

By the time I get to the point where I'm ready to rebuild my collapsed home, it would be a very different environment than the current one.  Who knows if the CEA would be shut down or declare bankruptcy at this point due to insolvency with millions of claims all at once.  The prospects are actually pretty bleak I think for getting your money's worth for this insurance.  And with all that said, please excuse me while I renew my policy.
 
aquabliss said:
Sometimes I think that if there really was an earthquake big enough to level my house, it would take months, maybe years before society as we know it is back to a normal, functional state.  Probably to level a house you need a good 8.0 and it's probably not going to be centered in Irvine which means the damage to nearby communities would be widespread.  The power grid would be out, no running water, probably couldn't safely drive on roads, business would have to shut down before they are all reinspected and deemed safe to reenter, etc. 

By the time I get to the point where I'm ready to rebuild my collapsed home, it would be a very different environment than the current one.  Who knows if the CEA would be shut down or declare bankruptcy at this point due to insolvency with millions of claims all at once.  The prospects are actually pretty bleak I think for getting your money's worth for this insurance.  And with all that said, please excuse me while I renew my policy.
Click to expand...

FEMA will step in and do a bail out or a loan?
 
eyephone said:
aquabliss said:
Sometimes I think that if there really was an earthquake big enough to level my house, it would take months, maybe years before society as we know it is back to a normal, functional state.  Probably to level a house you need a good 8.0 and it's probably not going to be centered in Irvine which means the damage to nearby communities would be widespread.  The power grid would be out, no running water, probably couldn't safely drive on roads, business would have to shut down before they are all reinspected and deemed safe to reenter, etc. 

By the time I get to the point where I'm ready to rebuild my collapsed home, it would be a very different environment than the current one.  Who knows if the CEA would be shut down or declare bankruptcy at this point due to insolvency with millions of claims all at once.  The prospects are actually pretty bleak I think for getting your money's worth for this insurance.  And with all that said, please excuse me while I renew my policy.
Click to expand...

FEMA will step in and do a bail out or a loan?
Click to expand...
That's what I think.... or whoever is the next president.

When it's a multi-person wide disaster, there is usually government assistance.

Does anyone remember what happened to all the Northridge homeowners? Too lazy to Google.
 
irvinehomeowner said:
eyephone said:
aquabliss said:
Sometimes I think that if there really was an earthquake big enough to level my house, it would take months, maybe years before society as we know it is back to a normal, functional state.  Probably to level a house you need a good 8.0 and it's probably not going to be centered in Irvine which means the damage to nearby communities would be widespread.  The power grid would be out, no running water, probably couldn't safely drive on roads, business would have to shut down before they are all reinspected and deemed safe to reenter, etc. 

By the time I get to the point where I'm ready to rebuild my collapsed home, it would be a very different environment than the current one.  Who knows if the CEA would be shut down or declare bankruptcy at this point due to insolvency with millions of claims all at once.  The prospects are actually pretty bleak I think for getting your money's worth for this insurance.  And with all that said, please excuse me while I renew my policy.
Click to expand...

FEMA will step in and do a bail out or a loan?
Click to expand...
That's what I think.... or whoever is the next president.

When it's a multi-person wide disaster, there is usually government assistance.

Does anyone remember what happened to all the Northridge homeowners? Too lazy to Google.
Click to expand...

If that's the case, we shouldn't get insurance?

 
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