Any one here covers there properties with earthquake insurance? Will any one consider getting one in the coming year?
I would not cover a property that I was holding to flip or fix and flip. But for the house you live in, or the house you rent, I would.
I did a study for our HOA last year. You need to look at maps prepared by the Oregon Department of Geology and Mineral Industries (DOGAMI). The map:
shows the worst places and best places to be in Oregon in the event of an earthquake. DOGAMI describes the coming earthquake in the Pacific Northwest as life changing. There will be so much infrastructure damage that you won't be able to travel around the area due to bridges wiped out. Check out:
This means it will be next to impossible to bring in the equipment necessary to begin rescue and recovery efforts and materials. It will take years to recover. If you are interested I'll send you a copy our report. While it is specific to our condominium association most of the information provided is relevant to this area.
Needless to say, in my study for the HOA, I recommended that we carry earthquake insurance. Careful study is also suggested regarding your homeowners insurance. You want to make sure that the coverage from one extends to the other, that you are not double covered and that there are no gaps. At best there is a 10% deductible for earthquake insurance. You should use an independent insurance agent to review and recommend appropriate policies.
Hope this helps.
I did get a Federal earthquake/flood insurance policy, in addition to my regular insurance for the flip we're working on. For the real big one here in Southern Oregon, we'd be potentially in the tsunami zone. I decided if I was going to sleep at nights, I had to add this coverage. In looking around, I found you could only buy a minimum of three months coverage (not a problem), but had to pay for a year up front.
I've been building my whole life I currently build bridges and remodel homes on the side if you have a single story home I wouldn't worry about it falling down a multi story home won't fall down but more damage is likely to occur if you have an older home like 70 or earlier I'd just hiring a contractor to evaluate your foundation and add some seismic straps maybe shear a wall or 2
Your biggest fear should be bridges and access
One thing to keep in mind is how much equity you have in the property. Most earthquake polices have extremely high deductibles, so if it's a new acquisition you don't have much equity in, it may not pay to insure for earthquakes.
Just purchased the earthquake insurance thru FaXXers which covers up to $2.6 mil with 10% deductible at $3000 premium yearly. It also comes with $320k loss of income protection for one yr. I decided not to increase the coverage to 100% of currently property value as I probably won't survive at 9.0
@Kelvin Lee wow thats a higher number than I thought? Is it possible to reduce the annual premium with some earthquake retrofitting like seismic anchors or anything like that?
I asked the same question to FaXXers and they said there is no retro fitting pre-requisite under their policy. That said the premium is not going to go down regardless it has been done or you are going to do it.
Two simple reasons I ended up getting one for my property. One, the earthquake insurance would cover damages caused by earthquake that the regular insurance won't. Two, the premium expense doesn't impact much on the overall investment performance. Just like other expenses, the premium is tax deductible.
Ive gone with Geovera earthquake coverage on my properties and believe they are fairly competitive in pricing. High deductible as expected in earthquake coverage but my yearly premium is under 400yr.