[Big Mac]

I think we're overdue for a huge earthquake in California within the next two years or so. I hope I'm wrong, but I have lived in California all my life and know that going more than a decade without a major earthquake probably means we're overdue. Perhaps it will be the "Big One" that the media have talked about for years and years. I hope I'm proven wrong yet very concerned I may not be. However, family members completely dismiss my suggestion to even get a quote for earthquake insurance. They tell me that it's high deductible, high premium insurance that doesn't make sense financially speaking. I don't think it would hurt anyone to get a quote, but they want none of it. I don't have any professional background on earthquake insurance like I do on life and health insurance, so I'm at a disadvantage there (friends and family go with my advice when I give it to them on life and health insurance matters). I have read that Californians buy the most earthquake insurance of any state but that only a small fraction of California's property owners have any. Anyone have suggestions on how to win this argument?

[Rumor]

Yes, it is a high ded, but the premiums generally aren't that much. Around $300 a year will cover a $500k home. Ded is either 10% or 15% of the home coverage. (500k home would be 50k ded at 10%) However, a normal HO-4 does not cover earth movement. So in the event of an earthquake, if the home is destroyed, the owner is responsible for the entire amount. Better to have some coverage rather than none at all.

Earthquake coverage is done by the California Earthquake Association (CEA) and is state run, so the premiums will be the same no matter which company you choose (excluding brokers who may charge a brokers fee).

[Big Mac]

Thank you once again for all the info, Rumor. Your post should really help me get my point across. You know, you really should sell insurance yourself.

Would you happen to know of the most painless way I could get a quote? Will an agent or broker talk to me about it if I'm not the homeowner but have an insurable interest in it?

[olePigeon]

1 in 4 people don't have auto insurance, either. You may not be able to convince them at all.

[Rumor]

Originally Posted by Big Mac 

Thank you once again for all the info, Rumor. Your post should really help me get my point across. You know, you really should sell insurance yourself.

Would you happen to know of the most painless way I could get a quote? Will an agent or broker talk to me about it if I'm not the homeowner but have an insurable interest in it?

Yes. As long as you have an insurable interest, you can buy the coverage yourself.

I was an insurance agent in Cal for five years.

[Big Mac]

Thank you! That is really helpful to know all of that. I guess I may just have to buy it myself, but that shouldn't be so bad.

[Rumor]

By Insurable interest, you will need to be on the home loan or deed. You may be able to purchase in their names if you are not either of those.

[Big Mac]

Ah. That makes it a bit tougher, but I can at least still get quotes I assume?

This is the article I was referring to earlier, in case anyone was interested.

[Rumor]

You should be able to get quotes. You can also use the CEA calculator.

[Big Mac]

Very helpful. The premium estimates are cheap (for basic policies)! My family would have to be really foolish not to get basic coverage.

[Big Mac]

Slashdot Technology Story | Google Funding the Next Big One?

Any day now. . .

[brassplayersrock²]

I know it wasn't big, but the 5.0 we had last month was a nice reminder of the quakes.

[olePigeon]

Earthquake insurance is a good idea. Even something as small as a 3.0 can put cracks in a foundation or cause shifts in elevation. We're also due for a big earthquake within the next 10 years.

Right now is probably the best time to get insurance.