CA. earthquake authority is it good?

[H.D.30-06]

I'm currently with Western mutual insurance. Dwelling coverage is 268,000 Max
Deductible is 40,200
Contents coverage is 5,000
Additional living expenses is 1,500
Annual premium is 279.00.

I'm sure my home is worth more than 268,000 and since the deductible is the amount of damage my house would have to incur before my coverage kicks in well that would kill me.

There's got to be better deals out there.

 

[ctwo]

not likely...my take is

typical damage will meet your deductible and you will never collect. depends on what you are covering - a glass house on greased skids?

If damage is more severe, then the entire community would be in ruin and insurance will bankrupt or whatever fed aid will step in anyway

seems a no-brainer insurance money maker for them

I was offered like $1500 renter's coverage for a little over $100. You could not pay me $1000 to dick with any such insurance claim.

 

[Caddywumpus]

For basically nothing it's... ok

 

[bojangle]

I'm currently with Western mutual insurance. Dwelling coverage is 268,000 Max
Deductible is 40,200
Contents coverage is 5,000
Additional living expenses is 1,500
Annual premium is 279.00.

I'm sure my home is worth more than 268,000 and since the deductible is the amount of damage my house would have to incur before my coverage kicks in well that would kill me.

There's got to be better deals out there.

It's not how much your home is worth, but how much it would cost to rebuild on the same land. With current bay area prices, it's a lot cheaper to rebuild than the value of the house.

Besides all that, like others have stated, I don't think earthquake insurance is worth having.

 

[afm199]

Earthquake insurance is catastrophic loss insurance. It's not repair insurance ( like collision insurance on a car.) It's a premium you pay to keep from being completely wiped out. If you have a lot of equity in a home, it's probably a good deal.

I have it on my house. I'm close to a fault. It runs $1k a year.

$279 is dirt cheap.

Where you live is the issue.

 

[ctwo]

It's not how much your home is worth, but how much it would cost to rebuild on the same land. With current bay area prices, it's a lot cheaper to rebuild than the value of the house.

Besides all that, like others have stated, I don't think earthquake insurance is worth having.

That's true, but it does not seem like building cost is cheap at all. It's around $150/sqft, so that 268K covers 1.7k sqft of 'simple' house. Two story is more...

Rebuilding is certainly cheaper than buying something else, maybe. After a major natural disaster, values might drop a bit.

 

[Caddywumpus]

More like 220k because 40k deductible