[quote=Hatfield]
As opposed to having to come up with $1,455,000 if you don’t have insurance?
The way I look at it: if the big one comes and the house comes crashing down, there will probably be state and federal loan assistance and other ways to scratch together the deductible. In our case, we have plenty of equity in the property so I think we’d be able to come up with the deducible one way or another. Beats walking away from the home and the equity.[/quote]
Problem with a huge earthquake that devastates everything means the insurance companies won’t have the money to pay. If a huge earthquake comes to SoCal and causes 1+ trillion in insurable damage that money isn’t coming from anywhere. If you’re on a cliff in Del mar and you house slides down the cliff and the houses inland are fine then you’ll get paid to have earthquake insurance.