Is Earthquake Insurance Worth It?
By: Diane Tuman, Zillow Content Manager | September 29, 2009
If you live in an earthquake prone area (yes, Seattle is one — that’s where Zillow is located), you probably wonder if earthquakes are covered under your insurance policy. Chances are, probably not.
So, this earthquake question in Zillow Advice is a good one:
Is it worthwhile to buy earthquake insurance?
Several insurance agents are chiming in such as Ruth Stroup, Nicole Larsen, and Eric Kossian. Thanks, insurance agents! It’s great to have you join the conversation and offer your expert advice.
Read more about when you need disaster insurance.
- Stumble it!
- Categories: Real Estate Advice
Comments
9 Comments so far
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aa on September 29, 2009 7:56 pm
Considering the cost of a house, not buying an earthquake insurance for like $100/yr seems stupid…
cerro on September 29, 2009 8:05 pm
it’s really worth it
Lauren on September 29, 2009 9:15 pm
I say purchase the insurance along with Tsunami insurance. Keep your bases covered… Its better to be safe, than sorry.
Steve on September 30, 2009 5:05 pm
$100/year? Not in California - more like $2000/year. With a huge deductible.
Jasmine Guevara on October 1, 2009 12:14 pm
It is not that expensive, earthquake insurance can be very affordable if you go with the right insurance carrier( STATE FARM hint’hint ;)) your deductable is only 15% of what it costs to rebuild your home. If your home is estimated at 157,000.00 to rebuild then your deductable is only 15% of that, do the math. That amount is much more feasible than having to refi and buy a whole new home. I would highly recommend purchasing earthquake insurance especially if you live in an earthquake zone like myself here in sunny Cali. Why wouldn’t you want to protect something that you have invested so much in??? When you’re not safe you will be sorry…
*Jasmine Guevara @ State Farm Insurance*
Steve on October 1, 2009 2:03 pm
Doesn’t State Farm use CEA (California Earthquake Authority) for their earthquake insurance? They don’t quote for earthquake on their web site.
Around here (San Jose) construction cost is about $200/sf, so $360,000 would be the rebuild cost. 15% is $54,000. It’s unlikely that I would suffer nore than that in damages unless “The Big One” hits. If (when) that happens, the insurance companies will go broke anyway.
Matthew on October 1, 2009 2:44 pm
I agree with Steve. I just bought earthquake insurance here in San Jose and it cost north of $1000 a year with a 15% deductible. I am probably not going to renew next year.
And the premium cost is the same no matter which insurance co. you go with since it is all (or almost all) through CEA.
Scott White on October 1, 2009 4:13 pm
LOL, yes St Farm does not do EQ on their paper …..I have been an agent for 13 yrs in CA and lived here my whole life…..my take on EQ is this. You figure out the equity you have in the home then look at what a total loss would cost you, vs- a standard EQ policy that replaces the home but doesn’t give much $5k personal property and $1500 loss of use, and use some common sense. If the home was built in 1940 and is still standing and never sustained more than 15% of the cost to rebuild in damage from any of the number of EQ’s we have had since 1940 then you are taking a calculated risk not having EQ insurance, if you own your home outright and are counting on the equity on that home to retire with or filling some other need, then look at the cost $800-3000/yr and if it doesn’t impact your lifestyle one way or the other get it. Or hope really hard that FEMA will assist you with the rebuild in the event of a total loss.
The New Toronto Condo Crown on October 4, 2009 8:52 pm
Boy, I’m glad to live in an Earthquake free zone!