Okay, after watching one of those “10 Worst Earthquakes”-type shows, I made it basically a mission to find some company out here (Southern California) that will offer earthquake insurance.
When we first set up our homeowner’s insurance, we inquired the rep (from AAA) about getting earthquake coverage. AAA said they offer some pathetic coverage through CEA (California Earthquake Authority)… and it is beyond bare-bones minimum. $5,000 for contents, with no more than $1,000 of that can be applied toward electronics. AND, the yearly premium for that (which is paid in addition to your fire/theft insurance) was something ridiculous, like several hundred dollars. Umm…no thanks.
It’s a bit unnerving to think that one solid temblor could wipe out our years of stuff-accumulation, with no protection in replacing it. I’m curious if there’s this kind of difficulty in, say, Kansas for getting tornado coverage.
So…Calfornia Dopers…do you have earthquake insurance? Who do you have it with? We only need it for contents, not the structure. The structure is covered through the homeowner’s association.
I do not live in California but I went to the California Earthquake Authority homepage here (click on online premium comparisons) and according to the example given, the cost of coverage is $2.40 per $1,000 of property. They use an example of $50,000 in coverage at $2.40 per $1,000, this equals only $120.00 per year.
It seems you were possibly given the wrong information by your agent. Check out the website, it lets you calculate a rate. Make sure when you select a coverage type you select “Earthquake-tenants”.
I asked my California State Farm agents, with whom I am on very friendly terms, whether it would be worthwhile getting earthquake insurance.
“No,” they said.
“Why not?” I asked.
They showed me the cost. “That’s outrageous!” I said.
“Right,” they said. “We don’t recommend it.”
I pointed out that given the number of homes destroyed in Californian in the last 100 years by earthquake, there was a very little likelihood I’d get anything like my investment back.
“Right,” they said.
"So why offer insurance no one’s going to want?
“Because the state is making us offer it. We don’t think it’s a good idea.” Then they gave their reasons.
Then I didn’t think it was a very good idea, either.
<sigh> I don’t know why I have this penchant for posting when I’ve only made 90% of a point…
As I recall their argument was something to the effect that houses having serious earthquake damage are extremely rare, that most people would be just throwing their money down the drain, and then be irritated about it looking back. State Farm doesn’t like irritated customers.