Earthquake Insurance (Los Angeles: lender, houses, closing)

[Domsey]

From my very informal poll of friends and family in the Los Angeles area, it seems that most people do not have earthquake insurance because of high cost and exorbitant deductible. Even my insurance agent said it wasn't worth it because it was expensive and would disqualify me from FEMA assistance (strange reasoning, I know). Most interesting, my lender didn't require it as a condition of closing.

So, do you have earthquake insurance? Is there an affordable standard policy out there that covers the structure/built-ins but not the contents of the house? I don't care so much about all my stuff, but if my house falls down I'd like to have it put back up.

[ferretkona]

Houses are built to with stand earthquakes, even over built. Earthquake ins. is so high it does not offset any future loss. Thru the last 50 years I have only lost a salt water aquarium and a few drinking glasses.

[EscapeCalifornia]

I think it was offered at $600/yr but I declined. Between the deductible and exclusions, it looked like it would be just about useless.

[Lovehound]

Originally Posted by Domsey

From my very informal poll of friends and family in the Los Angeles area, it seems that most people do not have earthquake insurance because of high cost and exorbitant deductible.

Same here, too expensive and high deductible makes it unlikely to collect.

Originally Posted by EscapeCalifornia

I think it was offered at $600/yr but I declined. Between the deductible and exclusions, it looked like it would be just about useless.

Yep, useless.

I had earthquake insurance in the '94 Northridge quake and I live about 1-2 miles from the epicenter. I had 10% deductible and my losses were right about 10% of the covered property. In fact it was almost exactly 10%, close enough that it wasn't worth going to the effort of putting in the paperwork.

The best and most reliable earthquake insurance is to live about 500 miles away from California.

[eureka1]

We are in the heart of earthquake country but most of the housing here is one-story so the losses aren't great. Plate glass windows are the most common loss. I have never had earthquake insurance.

[NewCalifornian]

I think everything that still stands after the Easter Earthquake is more than enough. I think it is too expensive and the earthquakes too rare to ever pay off.

[CA4Now]

Originally Posted by Domsey

So, do you have earthquake insurance? Is there an affordable standard policy out there that covers the structure/built-ins but not the contents of the house? I don't care so much about all my stuff, but if my house falls down I'd like to have it put back up.

No earthquake policy that I know of covers anything other than the structure; your other property would come under a regular homeowner's policy. Ours is through Allstate and isn't that expensive. I can't imagine living in L.A. without earthquake insurance.

[Lovehound]

Originally Posted by CA4Now

I can't imagine living in L.A. without earthquake insurance.

I can imagine it. I can see it right now, on I-40 and seeing California disappear in my rear view mirror.