Earthquake insurance question

[MovinFromUT]

Originally Posted by ElkRidge

I am an insurance agent and woudl recommend you consied getting the coverage, but you may want to look at a natural disaster policy depending on where you live because you will get mre bang for your buck, because you would have earthquake, flood and landslide coverage for about what you would pay for earthquake coverage with some companies

Now THAT makes more sense than just purchasing EQ insurance. We lived at the base of the Wasatch mountains, under a faultline, and never purchased insurance. I have read a lot about the geography of the area (even felt an EQ too), and if an EQ is going to happen (again, how do you think the Wasatch mountain range was made??) it's going to be BIG. That's where FEMA comes in, and basically, you move out, because there won't be anything left to live in. To us purchasing EQ ins was a total waste of money.
If it's going to happen,it's going to be big. Naive? Maybe, but we didn't waste a cent either....

[jaredjb]

That's it. In a recently published article on KSL.com, only 15% of homeowners in Utah that carry homeowners insurance also carry earthquake insurance. Not a big number considering a 7.4 magnitude earthquake is the potential for what could happen here. If you are moving to Utah, and especially if you are buying a house made of brick and mortar, you should atleast explore the option and buy a policy if you can afford it.

There are some great resources for earthquakes in Utah - they are:

The Utah Geological Survey @
Earthquakes & Geologic Hazards - Utah Geological Survey

Utah Earthquake Insurance Quotes @
http://ww.EQquote.com (broken link)

Utah Department of Public Safety Regarding Earthquakes @
Utah Division of Emergency Services & Homeland Security (broken link)

Utah Earthquake Preparedness @
UtahEarthquake - All you need to know about earthquakes and other geological hazards in Utah

Jared Balis

[Aerorick]

Having lived in Southern California for 52 years I have felt and seen the results from plenty of earthquakes. And I've come to one conclusion. Any earthquake strong enough to bring down a one or two-story wood-framed house to the point of being uninhabitable would be so distructive that it would be comparable to a small atomic blast. You wouldn't be calling your insurance broker you'd be looking for water and food. I don't mean to be cynical but look at footage of the Northridge and San Fransico quates. Sure an Oakland bridge section, an underbuilt elevated roadway and some freeway overpasses collasped but the only houses that were damaged were old brick structures. By and large 99% of the homes were fine. A wood framed house can take a lot of movement. That's what building codes are for. Thousands die in China and other places because they don't even have nails much less rules of construction.

[augustsun]

I have talked with many insurance agents and agencies about the idea that you can save money on earthquake insurance when owning a brick veneer or solid brick/block home and purchasing a policy that will rebuild the home without brick. This idea is false. If you have been advised to purchase this type of policy you should contact the insurance company directly and ask about it. You should also read your policy carefully. Some agents, in order to get sales, and undercut the actual price of coverage, will present this money saving idea to clients.

You can purchase insurance on your brick veneer home without coverage on the brick to save money. This means your are responsible for the cost of brick replacement. If you buy insurance on a solid brick/block home (load bearing walls are not frame) with the belief that the home will be replaced with a frame home, you are, in effect, stating that your current home is a frame home which is a misrepresentation. When the insurance company recognizes this misrepresentation thay will not honor the claim.

[easternerDC]

I just got my first new home a few days ago. I am also currently working on getting home owners insurance. What is the extra cost (on average) for EQ insurance. The insurance company I called did not know, because they said it was through a separate company, but thought it may be about an extra $20/month.

[coolcats]

I pay an extra $250 per year. This is a newer home with vinyl siding. Older and brick homes cost a lot more -- like 5x more.

[cinnabon]

I can find this out for myself, but just curious if anyone knows if renters insurance typically covers earthquake damage (to your stuff, not the house of course) or if you have to get an extra rider to cover that? I have a lot of valuable breakable stuff that even a relatively small earthquake might damage.

[TWariner]

We carry earthquake insurance. It's silly not to in an earthquake prone area. I've lived here all my life and I've felt four earthquakes. I think they were about 4.5. Nothing major yet, but they cause cracks in cement and walls, etc. We have fault lines criss-crossing all around the Salt Lake Valley and all along the Wasatch Mountains, as far as Brigham City and down toward Levan.

We could have an earthquake around a 7.5 magnitude at any time. We've been overdue for one for a long time.

A magnitude 5.5 - 6.5 occurs somewhere in Utah about every seven years, and there are about 700 earthquakes in general all over Utah every year.

If you saw a map with the faults running all along the Salt Lake Valley and read about what could happen in a major earthquake here, you'd get earthquake insurance. In some areas you might also consider flood insurance.

[Aggie]

Originally Posted by SergeantL

I do know this. The fault that runs along the Wasatch Front has the potential to inflict a massive uplift. The very fact that Utah is no longer at the bottom of an inland sea is proof of that. Ladies and Gentlemen, please place your bets……………..

legalized gambling ... thanks for the grin!

[smartyknickers]

It is a good idea to get EQ insurance. It's might be a little expensive if you're closer to a fault line, and you'll have to self-insure a hefty amount up front by way of a deductible (heaven forbid you have to file a claim) but it's better safe than sorry. Especially if you have a lot of equity in your home.

I would highly recommend contacting an independent insurance agent who represents several top-rated companies and ask them to shop your homeowners insurance around with the EQ endorsement. That way, you know you'll have choices, and at least one of their companies is bound to offer the right value and package for your needs.

Some of you mentioned that you were unable to obtain EQ coverage from your agents; I know that Utah has a lot of seismic activity (albeit small amounts) but insurance companies will place a moratorium on issuing new EQ coverage for a certain number of days following an earthquake of a certain magnitude or higher, depending on how far you are from the epicenter. Companies want to wait until the risk of aftershocks is done.