Do SD'ers carry EARTHQUAKE Insurance?

[sdjimbob]

Originally Posted by RosieSD

I guess you missed the part where Trump threatened to deny FEMA help to California wild fire victims.

On the contrary, I heard quite clearly that he felt the state wasn't properly raking the forests and using too much money for illegals. And then ultimately the disaster was declared, just as it was for Ridgecrest recently.

[snpdragr]

Originally Posted by cruitr

Insuring your house for the Zillow value is a total waste of money. The same applies to EQ insurance.

I don't think that's actually possible. As I recall the CEA asks for the value of the structure not total property value (house+land).

[snpdragr]

Originally Posted by Axxlrod

I researched EQ insurance several months ago.
- Deductibles are so high that unless your house is damaged to the point that it is declared uninhabitable, you most likely won't hit your deductible. So what's the point?

- They will cover damage from the EQ only. If your house catches on fire or pipes break resulting in water damage, EQ insurance won't help you. You would have to claim that damage via homeowners insurance.

- EQ insurance will cover the main dwelling only. No detached buildings/garages and no pool/landscape damage.

- You can add a rider to cover renting another home in the event your house is damaged by EQ, but it's rather expensive to for that option.

In my case, the deductible would be well into the 6 figures, so it would only help me if the house was basically destroyed. Seeing as how there are no major faults nearby, I opted to roll the dice...

You can get deductible as low as 5% of the structures value. So if the home value is 300k, then your deductible could be as little as 15k.

If there's an earthquake and you need some foundation repair, ruined floors, etc. I can see that easily hitting 100k in repairs.

[malcorub16]

The day the big one destroys our home in Lakeside or even the neighborhood is the day we say ADIOS and just move back to our property in Texas. Why would I want to live in an earthquake ravaged area.... No earthquake insurance for me, it is a risk I am willing to take given the small number homes that have even been damaged by earthquakes in SD
since I've been here. I am not saying it won't happen, I am merely saying it's a risk I am willing to live with.

As cruitr says, the land will still have value even if the structure is destroyed.

[ddeemo]

I don't have Earthquake insurance in San Diego and don't on rentals I have in the SF Bay Area (higher EQ risk). If you look at San Diego County fault activity https://www.earthquakeauthority.com/...ults-By-County - all the faults west of the desert area are shown as being old. Additionally - even if there was a more active faults in the region, I wouldn't worry unless you are in a soft soil area (mainly fill areas) since most damages are due to soil liquification enhancing the movement and/or causing settling & cracking or had significant masonry construction - wood and steel have much more give.

FYI - I used to own a Victorian house that is all redwood construction (built 1850s) in the SF bay area that survived the 1906 earthquake even though in one of the highest intensity areas and about 2 blocks from the bay but on solid ground, not fill - still in great shape.

[Axxlrod]

Originally Posted by snpdragr

You can get deductible as low as 5% of the structures value. So if the home value is 300k, then your deductible could be as little as 15k.

If there's an earthquake and you need some foundation repair, ruined floors, etc. I can see that easily hitting 100k in repairs.

I don't think there are any $300K homes in SD anymore. The avg is almost double that amount.

[malcorub16]

^Remember, the price of what it takes to build a structure is much lower than real estate market value. Plus, if an earthquake damages homes in a concentrated area I am sure the neighborhood's home's market value would drop significantly.