San Diego Housing Market News and Analysis
CEA Earthquake Insurance?
User Forum Topic
Submitted by profhoff on August 16, 2012 - 2:03pm
My insurance company (Allied) just informed me that they are no longer underwriting earthquake insurance and they have offered me a CEA (California Earthquake Authority) policy.
It's really expensive ($1150/yr) with a $100,000 deductible. It doesn't really cover contents (up to $5000). It's hard to tell from the policy but I *think* if the house burns down or blows up as a result of the earthquake, I'm not covered since that's fire or gas, not earthquake.
Anyway, it seems like there are a lot of loopholes, not the least of which is the statement in the policy that if the Authority runs out of money to pay, I'm SOOL. In the event of a major quake, this seems pretty likely.
My house is in Riverside and built in 1999. In today's market it's worth around $650,000 give or take.
Should I buy the insurance? How can I make an informed decision?
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