Earthquake insurance - how much?

[IronWing]

I just inquired of my insurance company as to the cost of earthquake insurance for my humble abode. The premium quoted was 1% of the market value of the house with a 5% deductible. This is more than three times the premium for replacement cost coverage for fire, tornado, etc. and we don't live in a particularly seismically active area. So I was wondering what folks who have earthquake coverage are paying.

 

[DrPizza]

Is that 1% an annual fee? Sounds ridiculously high to me for a non-seismically active area.

 

[IronWing]

Is that 1% an annual fee? Sounds ridiculously high to me for a non-seismically active area.

Yep. I took it as the insurance company's way of saying "We don't want to get into the earthquake insurance business." I guess that it is difficult for them to develop actuarial tables to deal with extremely rare events so they pull a high premium out of their butts.

 

[Fritzo]

Ever consider volcano insurance?

 

[joebloggs10]

Where I'm at earthquake coverage is typically 50-100% of the annual dwelling premium. This is for a low seismic area.

 

[Dirigible]

I'm about two hundred yards from the Hayward fault. Earthquake insurance was about twice the cost of my normal house insurance, and that was with a huge deductible. I said screw it and just earthquake retrofitted the fuck out of my house.

 

[Bignate603]

If it's damaged in an earthquake just set it on fire a day after. :twisted:

 

[brtspears2]

Earthquake insurance is a rip off. My 800 sq ft condo would cost $850/yr to insure with a $25,000 deductible. At my point in my life, $25000 is still a lot of money, and it is easier just to walk away and start over in the event of a total loss.