OT: Earth Quake Insurance

[joosttx]

Man, this a tough pill to swallow. I done the numbers and it is tough to justify but then again its tough not too. Little less than $2k a year with a 15% deductable. What is some of the collective logic here.

[gasman]

I dropped mine when the premiums went over $2K /year with a 20% deductible.I did have a structural engineer come out and look at my house last year. Also ,when we had the house build I placed a lot of extra strapping between our two floors and made sure the house was securely fastened to the foundation. Heck, I even put hurricane straps to secure the roof trusses.I grew up in San Jose so I"m paranoid.

The more they have learned about the risk of a Cascade subduction zone earthquake the more my premiums went up.It's very hard to get new policies that don't cost and arm and a leg. I finally just decided to take my chances.

[BobO]

There are a lot of variables to look into. Beginning with where you sit on a seismic hazard map. Next is age of the home, and, the state of lateral load design. Then there is your financial situation, as in, can you afford to rebuild without insurance. Is the property likely to be viable after an earthquake, with the soil liquefy to the point of requiring massive stabilizing, or will it fall into the ocean. Some areas will get federal disaster relief which may offset some of a loss, maybe not though.

The likelihood of personally having catastrophic loss due to earthquake is very low even if you live in a severe risk area. But, in some areas there is enough risk to justify the insurance.

[FlashUNC]

Our building requires an earthquake rider on our renters policy.

Given I can see Memorial stadium, and the Hayward fault, from our roof, that makes sense.

But way I see it, big one happens I'm just riding the building into the Bay.

[jghall]

Unfortunately it's the nature of business. Same said about flood and other insurances. Risk vs. Reward. On both sides.

Understand the savings, but it only takes one where you'd wish you would have not. In the end, it's all a personal decision.

[donevwil]

Cost of playin' in the future island previously known as western CA???

I've been in since '05 and figure that just means I'm putting off a few house upgrades and riding sub-standard rigs for a few years extra. Not that it's a primary expense here, but what is life without a few excuses (not referring to the banning thread, really I'm not, OK I am).

[rwsaunders]

Plan to buy a policy in 2047...

https://www.google.com/amp/s/amp.businessinsider.com/san-francisco-bay-area-earthquake-skyscraper-risk-2018-4

[jtakeda]

It’s such a hard pill to swallow. The insurance providers have you by the balls so bad—especially since there are not many how do earthquake coverage.

But you work from home right? Could you write off the insurance as a business expense?

[joosttx]

It’s such a hard pill to swallow. The insurance providers have you by the balls so bad—especially since there are not many how do earthquake coverage.

But you work from home right? Could you write off the insurance as a business expense?

No, I dont work. I retired over a year ago. I swallowed the pill today. I am not reading anything that has not been thrown into the equation. We can afford it and there is no way I can invest that little money and profit enough to hedge. Luckily we live on a very tall hill so we definitely do not need flood insurance like the valley-folk.

we are on bedrock so liquefication is highly unlikely according to the engineerings

[Louis]

Plan to buy a policy in 2047...

https://www.google.com/amp/s/amp.businessinsider.com/san-francisco-bay-area-earthquake-skyscraper-risk-2018-4

Or, you could just move to Bozeman MT - you won't have to worry about CA earthquakes there:

Yellowstone Supervolcano Ash Thickness Zones

https://www.sciencenews.org/sites/default/files/main/articles/scivis_860.jpg

[joosttx]

You know the worse earthquake I ever experienced was in Philly actually. I was in a negotiation with another company in a no-window office 23 floors above suburban station when I heard a loud boom and then I saw the floors actually wave. It was like realizing I was in the Matrix. Anyway the thought it was a terrorist attack then we walked down the stairs and finished the meeting in Rittenhouse square and celebrated with beers at Monks and steaks at Barclay Prime.

[Louis]

celebrated with beers at Monks

Went there a few years ago when I was in Philly for business. Great beer menu.

Also had the beer sampler at some other place not too far from Independence Hall, it was also very good.

However, Geno's was a disappointment. (Didn't have a chance to try Pat's)

[joosttx]

Went there a few years ago when I was in Philly for business. Great beer menu.

Also had the beer sampler at some other place not too far from Independence Hall, it was also very good.

However, Geno's was a disappointment. (Didn't have a chance to try Pat's)

Pats is better.... but that's debatable :banana:

[brownhound]

Or, you could just move to Bozeman MT - you won't have to worry about CA earthquakes there[/IMG]


The Yellowstone super caldera is just a fault zone. Growing up in Bozeman, I felt quakes frequently.


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[rwsaunders]

Here’s the daily tally of earthquakes in the world that hit +2.5 on the Richter scale. It does make you stop and wonder sometime.

https://earthquake.usgs.gov/earthquakes/map/

[weisan]

It does make you stop and wonder sometime.
That the earth is active and alive, and still evolving, yeah absolutely!

[zap]

Man, this a tough pill to swallow. I done the numbers and it is tough to justify but then again its tough not too. Little less than $2k a year with a 15% deductable. What is some of the collective logic here.

The question I have, if there is a big one, will they pay?

Insurance companies have a history in states such as Florida for not paying out after big events.

[Ralph]

I live in Central Florida. The biggest risk to my home is from sink holes, not hurricanes. In Florida all homeowner insurance policies include catastrophic ground collapse....which means your house has to have significant damage from a actual sink hole before your insurance takes over after your deductible. So many of us purchase a rider to protect us from sink holes maybe in the yard that are not directly under the home. Hurricane protection is another matter....also included...and you pick the deductible amount. My homeowner insurance is more than my local real estate taxes.


I calculate that maintenance (fixing stuff....roof, pool equipment--solar, AC, plumbing, driveway, painting, lawn maintenance and etc, etc, etc) plus real estate taxes and insurance is at least 3-3.5% per year of the value of the home......the national average of long term home appreciation.

My home is paid for.....but have about decided the real estate to own is commercial or rental where someone one else pays for it. And all my equity is not doing much for me sitting in a home.

May just sell my home, invest the money....and rent a real nice place in a nice community. According to my calculations.....I could pay a lot of rent and be better off.....adding in the opportunity cost of the dead money plus the costs I would not have.

Can always invest in real estate in the stock market by buying builder stocks during recessions or REIT's, etc. Don't need to live in my real estate investments. The numbers associated with home ownership not like they were a generation ago. Too much cost that kills the investment.

[Ozz]

Man, this a tough pill to swallow. I done the numbers and it is tough to justify but then again its tough not too. Little less than $2k a year with a 15% deductable. What is some of the collective logic here.
What is your house made of?

When an earthquake happens, most homes do not collapse (the wood ones). Brick and stucco will crack and have problems. Wood ones end up with cracked drywall and things falling off shelves. Worst case, foundation cracks, house moves off foundation (new homes have straps to prevent).

It would be interesting to see what the make up of the claims are after a major earthquake? My guess is that it is confidential insurance info and they don't want to share it....with most around $5000 - $30,000....just a guess though.

Most damage in the 1906 SF quake was from the fires....covered under your fire insurance.

My wife keeps wanting us to get earthquake insurance and I tell our house is not going to collapse...been telling her this for 23 years...so at $2000 a year in premium savings I think it has been worth it.

[el cheapo]

The U.S. is way overdue for a natural calamity of monumental proportions. Massive casualties and epic destruction. Insurance companies are all bankrupt from a tsunami of claims. The federal government can't print enough money to recover from the devastation. You are on your own. Sounds pretty grim doesn't it. Let's face it, the probability of this happening anytime soon is pretty slim but you never know. Think nukes, volcanoes, comets, earthquakes, or the White House.

[joosttx]

The U.S. is way overdue for a natural calamity of monumental proportions. Massive casualties and epic destruction. Insurance companies are all bankrupt from a tsunami of claims. The federal government can't print enough money to recover from the devastation. You are on your own. Sounds pretty grim doesn't it. Let's face it, the probability of this happening anytime soon is pretty slim but you never know. Think nukes, volcanoes, comets, earthquakes, or the White House.

Where is your evidence? Please don’t cite InfoWars.

[Louis]

Where is your evidence? Please don’t cite InfoWars.

Iben Browning

[Irishgirl]

Experts predict there is a 99% chance
that California will experience a magnitude 6.7 earthquake or greater in the next 30 years, as reported by the California Earthquake Authority (CEA).

The coverage is expensive and the deductibles are high. One perspective is to consider the equity in the property and the expense of having to fund the rebuilding of the structure in the event of an earthquake vs paying premiums to an insurance carrier over time and funding the deductible when the earthquake hits.

It boils down to measuring your appetite for risk.



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[joosttx]

Iben Browning

Tip of the hat, sir