Home owners in earthquake areas, you think earthquake insurance is worth it?

Discussion in 'Archived Threads 2001-2004' started by Luc, Jun 21, 2002.

  1. Luc

    Luc Stunt Coordinator

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    This is really a tough call. In general, the people I've spoken to in the bay area don't buy earthquake insurance simply because it's expensive.

    The offer is $550 annual premium, which is the same as my home owner insurance. To be honest, I don't think it's all that expensive considering what it covers but then again, it sure adds up over the years. Any thoughts or experiences?
     
  2. Jack Briggs

    Jack Briggs Executive Producer

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    Ask somebody who survived the 1994 Northridge 'quake. Or the '89 Loma Prieta shaker. And consider your town, and the soil upon which it is built, and the premium, in context, seems a small price to pay.
     
  3. Julie K

    Julie K Screenwriter

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    I'm currently not a fan of earthquake insurance. The premiums used to be reasonable, but I think they've gotten a bit too high now for what they cover. If your house is demolished they'll pay out - maybe. Folks in the Northridge quake have had some difficulties with that. However, you can also get FEMA relief or a small business loan to rebuild.
     
  4. Brian Perry

    Brian Perry Cinematographer

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    I think the reason many do not purchase catastrophe insurance is because of the perception that the someone will bail you out in a disaster. There are many farmers who gave up on drought insurance, not because it didn't work or was too expensive, but because they saw other farmers who didn't feel like paying for insurance get rescued by Uncle Sam.
     
  5. Janna S

    Janna S Second Unit

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    I live about 25 feet from a slide zone, one where replatting had to be done after the big Alaska earthquake in '64. It's a "red zone" for insurance purposes - earthquake insurance is not available. It's not like the co-op I live in was foolishly built there after that quake - it was, in fact, built in 1941 (it's one of the oldest housing developments in all of Alaska). I figure if that same fault goes again, I'll either be in the water or be clifftop/beachside. Would I buy earthquake insurance if I could? Yes.
     
  6. Tim Markley

    Tim Markley Screenwriter

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    I live in the SF Bay Area and I have earthquake insurance. I think that the $500 a year that I pay is more than worth it. Earthquakes are a common occurrance and it won't take much to do a lot of damage to a house. A small crack in the foundation can take a lot of $$ to repair.
     
  7. DavidY

    DavidY Supporting Actor

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    When I was living along the North Coast of BC, I had purchased earthquake insurance for my apartment. During the five or six years there, I felt a couple of earthquakes including one that was off the Queen Charlotte Islands (6 plus....I was over a hundred miles away). Buying insurance is for the peace of mind.

    Dave
     
  8. Dennis Nicholls

    Dennis Nicholls Lead Actor

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    The real problem with earthquake insurance is that there's about a $20,000 DEDUCTABLE or so in most cases. There's no payout unless the whole house collapses. My house is about 7 miles from the epicenter of the 1989 Loma Prieta quake and suffered NO damage of any kind.
     
  9. Brian W. Ralston

    Brian W. Ralston Supporting Actor

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    Dennis said
     
  10. Patrick_S

    Patrick_S Producer

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  11. Dennis Nicholls

    Dennis Nicholls Lead Actor

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    The problem is that a "$500,000 house" is really a $100,000 house on a $400,000 LOT. And the lot isn't damaged.
    LA house prices are SO MUCH CHEAPER than San Jose prices......[​IMG]
     
  12. Todd Hochard

    Todd Hochard Cinematographer

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    Standard homeowners insurance doesn't cover that? My standard homeowners policy covers hurricane (but not flood) damage. It's strange to me, that a "feature" of coastal California is excluded from the policy.
     

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