So…The other thread about earthquake insurance got me thinking… My house is almost paid off. It belongs to me more than the bank, as someone pointed out… So I called my insurance agent to find out how much it would cost.
It’s not as bad as I thought it would be..
I ended up taking a $500k replacement cost dwelling cost coverage for $301/year. There’s a 15% deductible, which is fine since I figure it’s catastrophic insurance coverage and it’s will be easier to pay 15% of $500k than $500k replacement cost.
What’s interesting is that my agent did some research and the underwriter of this policy allows you to buy down your deductible.
For the same $500k replacement cost coverage:
15% deductible is $301/year
20% deductible is $250/year
5% deductible is $484/year
That’s not as bad as I thought, I guess because San Diego is a much lower risk area than say Palms Springs, LA, or Bay Area. So for $300/year, I think for me it’s peace of mind. I’m still slightly under-insuranced with a $500k replacement cost, but it’s still better than nothing.
What’s also interesting to note is that my agent didn’t previously have earthquake insurance himself, but when ended up freaking him out was he mentioned that when the big one hit in some places, those that were expecting to get a low interest FEMA loan, a lot of those people made too much money to qualify for the loan. So he ended up carrying earthquake insurance too.
Well, there’s the Rose Canyon fault, and I remember reading a few years back that seismologists had concerns it might become active again, or some other seismic event would make it become active again.
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