'Acts of God' Insurance? And the recent viral CA Mega Quake Predictions

7 Replies


my mom called from nyc 5am pacific this morn, to ask is the huge quake hit us here in socal.. she didnt know but i threw on the laptop and went to see whats going on.. apparently a prediction's going viral based on some planetary aligment happening; a dutch dude interpreting some Nostradamus predictions into a 9.8M(!) warning for CA around today.. 


what's weird is the mainstream media coverage of the prediction making it so viral; perhaps they're trying to push the new San Andreas mega quake movie!?

anyways, in any event, its only a matter of time norcal and/or socal will get hit purdy badly, last year's quake (felt like a 6) around here in los angeles & orange county felt pretty darn weird, with its prolonged wavy WOBBLING movement as opposed to the more usual sharper up and down or side to side jerks.

oh and RIP nepal quake victims!


does standard home insurance cover quakes and other 'acts of God'? or does separate policy usually have to be acquired for seismic protection? ya, time to check my individual policy with amica

Can't resits, hope link works:


I don't believe that earthquake insurance is included in standard home owners insurance.  I believe that most insurance companies have not included it since the Northridge quakes.  So I would say it would be a separate policy.

We're in LA and have separate quake insurance, sometimes separate fire if you're in a fire zone. 

Originally posted by @Dean S. :

We're in LA and have separate quake insurance, sometimes separate fire if you're in a fire zone. 

 Same thing In Santa Cruz county.  Separate fire and earthquake insurance. The recent earthquake in Vegas (Where I own my property!) made me rethink my insurance issues, fortunately there wasn't any damage!

Licensed P/C agent.

Earthquake is a standard exclusion on any standard property insurance policy (personal or commercial).  Same thing goes for Flood.

Now I know certain companies will drastically change their coverage depending on the location in the US (ie. quakes in California, flooding in Louisiana, hurricanes in Florida, etc.), so you might find a standard carrier that includes it, but it's HIGHLY unlikely.  You'll need to buy a separate policy.

As an owner of multiple properties within a handful of miles from a major fault, I do the math every couple years. 

Ca Earthquake Authority offers a 15% deductible. For one duplex @ 1.1M value = 165k out of pocket before they pay anything. 

$4,600 / annual premium (the quote I got last year) * 10 year hold = $46,000. 

At this point, the damage has to exceed 200k before insurance gets involved. 

In addition FEMA may gets involved in bad quakes and helps out owners.

So then it becomes a risk to cash reserve question. so far, we have always opted out. But I can't shake the fear that one big  quake wipes out a life of wealth building. Hence my strong drive to begin buying properties in other states (Washington and now Minnesota).

Most property policies cover acts of god.  Just not all of them.  Earth Movement and Water Damage being the usual exclusion a special form policy, many more exclusions on a basic form policy

@Shane Pearlman

For you, I would also check an agent on a DIC (difference in condition) policy to cover your quake concerns.  You might just be able to negotiate a better coverage/price than the state mandate type EQ coverage.

DIC Coverage is a marine (don't think boats, think free form property coverage) coverage that is usually used to cover the excluded perils on a property policy.

Ever wonder who would invest in a hospital in Los Angeles if the earthquake would not be covered.  Enter DIC coverage.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here