Earthquake insurance

[Foxsea]

There was an article in the paper about the soaring costs.
I don't have it currently, but wife is pressuring for it.
I understand the deductible is huge as well, up to 50K ??
Who's got it ?

Here's an interesting read: http://www.naic.org/documents/consumer_guide_earthquake.pdf

Out of curiosity, I called for a quote on adding earthquake coverage: I was told the premiums are 'way up this year and the deductibles will double. My homeowner policy would go from $796 per year to well over $1500 and the deductible would double from 5% to 10% of insured value. It sounds like some companies will still write last years premiums and deductibles if you shop around and act quickly. I was told that flood, tsunami and landslides are not covered. Land and service repairs are not covered, either. Aftershocks within 3 days are considered one event but after that another claim and deductible would come into play.

 

[Deewar25]

hmm, interesting - just got my insurance renewal and my earthquake costs on rentals went down 10% and personal up 10% but all increased 40k in liability limit....I asked why it wasn't up, they said it was just because of the zone I was in. Uh, I'll take it (covers 7 days of aftershock too).

 

[Canso]

too much fine print, I got rid of it.
its the oldest house on the street, and considered a tear down.

 

[searun]

Already gone up, had to take a 10% deductible of the claim, and our premium was $572. Without the deductible we could not get a rate we could afford. Even at that the bill was $1,291 to insure the house.

 

[Fisher Down]

We've had it for years - and as others have said, we can't afford NOT to have it. Our premiums went up about 60% to $372, and the deductable also doubled to 10%. This is based on $800K total coverage for building, contents, etc.

Another issue mentioned earlier is about the possibility of the insurance company not being able to pay out if a massive quake hits a large number of customers/clients. I believe all insurance companies must have their coverage insured by some sort of international conglomeration to ensure they can follow through with their insurance policies. I guess this would be called 'insurance insurance'

F D

 

[searun]

It's called re-insurance and how it works is your insurance company goes out to the market and seeks another insurer to pick up all risks over an agreed upon loss. So you might be purchasing a policy for say 1 million, and they are actually re-insured for 50%. It would be highly improbable losses would be so high that there would be no coverage...and if it was that bad, you probably wouldn't be around to collect on that policy anyway. It is the re-insurance market that is now driving the cost of earthquake insurance overall. The underwriters base their policy on risk, and with all the seismic activity recently coupled with the large losses due to severe storms in the US we are all paying heavily.

 

[Doug]

I agree with Foxsea. I experienced the same when I went to renew and at a deductable of over $60K and the extra cost it is not worth it. Special after you read the fine print.

Deewar I’d like to get your insurers name so I can get a quote

I’ve got my ATC 20 certificate for post earthquake evaluations. While working as a Project Manager for the Federal Gov we were require to attend courses to be prepared to perform inspection after the big one. We watched demonstrations on the simulations table at UBC which gave you a good understand of what will happen to different type of structures.

If your house is on solid ground, newer, built to code, wood frame and bolted to the foundation your house will most likely shake crack and buckle floors and walls but not collapse

Your biggest fears are if your house is built on sand with water content, the frame is not bolted to the foundation; you have a lot of window which all lined up on one side of the structure, there is no cross bracing.

Insurers are well known not to pay out for some reason. If your house doesn’t comply with code for any reason they will not pay. I read that over 50% of insurance claims are denied in the US. Just look at what the payouts have been for Katrina.


I carry no EQ insurance

 

[Deewar25]

I agree with Foxsea. I experienced the same when I went to renew and at a deductable of over $60K and the extra cost it is not worth it. Special after you read the fine print.

Deewar I’d like to get your insurers name so I can get a quote

I’ve got my ATC 20 certificate for post earthquake evaluations. While working as a Project Manager for the Federal Gov we were require to attend courses to be prepared to perform inspection after the big one. We watched demonstrations on the simulations table at UBC which gave you a good understand of what will happen to different type of structures.

If your house is on solid ground, newer, built to code, wood frame and bolted to the foundation your house will most likely shake crack and buckle floors and walls but not collapse

Your biggest fears are if your house is built on sand with water content, the frame is not bolted to the foundation; you have a lot of window which all lined up on one side of the structure, there is no cross bracing.

Insurers are well known not to pay out for some reason. If your house doesn’t comply with code for any reason they will not pay. I read that over 50% of insurance claims are denied in the US. Just look at what the payouts have been for Katrina.


I carry no EQ insurance

Doug, we are with TD Melloche Monnex - I believe you have to be a university alumni to get access, but I think they are probably one of the cheapest on what is covered. We are paying $260 quake for 640k cover on 5% deductible, with 7 days of aftershock for our personal residence (that went up in premium). Our 1 rental is $310 for $910k coverage, and $210 for $600k on the other. Covers all living expenses while rebuilding as well etc Not covered by tsunami, but if a tsunami hits any of those homes, we are all dead anyway

 

[GDW]

Gotta love it when you can hit search and get home insurance advice from a fishing forum.

Any opinions on how earth quake proof the building code was in 1967? Now that its time to get my own house insurance I'm not sure if the quake is worth it or not. Almost $500/year with $108,000 deductible or $600/year with $76,000 deductible.

Ouch and ouch.

 

[MRACER]

My wife--the accountant-lol--felt the biggest worry over some small structural damage that made the house no longer habitable, not full collapse--would really suck if it looks ok, but the gov't will not let you enter it.

 

[beemer]

Got it! When it happens please don't be one of those guys with no insurance crying to the government that we no longer have a house to live in and we need compensation!

If you live in a post and beam house the best thing you can do is make sure the posts and the beams and cripple walls are connected in some way. Most older houses shake off the posts and collapse , a simple 50 cent T stops this from happening. One of the lessons learned in Christchurch
beemer

 

[Degree of Freedom]

Any opinions on how earth quake proof the building code was in 1967?
Ouch and ouch.

The house itself is likely built well enough to be ok...the problem with older homes (and poorly constructed new homes) is the connection between the structure and the foundation...severe ground motion to a structure that is not connected adequately to the foundation is like pulling a table cloth out from under the dishes. If your house moves off the foundation... best case scenario is a huge repair bill, worst case is complete collapse...tear down and rebuild is somewhere in between.
For more minor ground motion, damage will likely be limited to cosmetic...so do the math and decide if the deductible makes it worthwhile.


In my opinion (and I have been assured otherwise by insurance companies, but have trouble believing it) in the event of a catastrophic earthquake, there is no way the insurance companies will be able to pay everyone out and even if they can it will take years as everyone will be suing everyone (home owners, municipalities, contractors, engineers, insurance companies will be pointing the blame around like mad...)

 

[Bows Up]

x2 on Meloche-Monex. $172 on $434k and 5% deductible.

 

[Roofus]

i dont wanna derail with a fire but after barely making it out with my second kid out of a fire naked nonetheless in the middle of the night maybe these pics will show what its like to lose everything and have it all replaced i dont ever complain about my insurance premiums, my bank requires earthquake insurance it is not an option even on a brand new build

 

[GDW]

Nice home Roofus thanks for sharing