Earthquake Insurance experience and/or thoughts?

9mm guy · Apr 9, 2017

As beginner prepper, I learned/realized how important it is to assess & calculate what risks are most likely in our region in order to prepare for it. And so I think most people would agree that the Cascadia earthquake is the most likely where I live which is the suburbs of Portland, Oregon as opposed to EMP, mass disease outbreak/zombie apocalypse, socio-economic collapse, or terrorist attacks. If you disagree with this assessment, please let me know. I may be wrong and would love to hear your thoughts.

And so this is a topic that I don't hear too many preppers talk about. Assuming we survive through the earthquake and it's aftermath thanks to our prepping supplies, I started thinking about what happens after that? For our family, our house is our only asset. If it collapses or is severely damaged, we are screwed. This got me thinking about getting earthquake insurance.

Do you other preppers have earthquake insurance for your house? Do you have insurers that you recommend? Or advice on what to include or what not to include in the policy? Or to make sure not to pay over a certain amount? Do you not recommend it for some reason? Has anyone actually lived through an earthquake (perhaps in another state or something) & have experience collecting on the policy? And maybe have any advice on your experience? Thanks in advance for all your answers.

Tony617 · Apr 9, 2017

9mm guy said:
As beginner prepper, I learned/realized how important it is to assess & calculate what risks are most likely in our region in order to prepare for it. And so I think most people would agree that the Cascadia earthquake is the most likely where I live which is the suburbs of Portland, Oregon as opposed to EMP, mass disease outbreak/zombie apocalypse, socio-economic collapse, or terrorist attacks. If you disagree with this assessment, please let me know. I may be wrong and would love to hear your thoughts.

And so this is a topic that I don't hear too many preppers talk about. Assuming we survive through the earthquake and it's aftermath thanks to our prepping supplies, I started thinking about what happens after that? For our family, our house is our only asset. If it collapses or is severely damaged, we are screwed. This got me thinking about getting earthquake insurance.
Do you other preppers have earthquake insurance for your house? Do you have insurers that you recommend? Or advice on what to include or what not to include in the policy? Or to make sure not to pay over a certain amount? Do you not recommend it for some reason? Has anyone actually lived through an earthquake (perhaps in another state or something) & have experience collecting on the policy? And maybe have any advice on your experience? Thanks in advance for all your answers.

I have a separate policy for earthquake insurance from my homeowners policy. My insurance agent said that insurance companies need to be careful not to oversell earthquake insurance otherwise the insurance company may go bankrupt with too many policies in the same neighborhood. It does not cover a war, radiation, or bio hazard.

If you have natural gas in your home you may want to get an automatic natural gas shutoff value install where it it detects an 5.2 or greater earthquake it shuts off the NG. Mine shuts off at 5,2 and but I am not sure if can find one that shuts off with less than a 5.2 earthquake.

HB of CJ · Apr 9, 2017

Be careful buying Earthquake insurance, even if you can get it. Tony617 has said why. Also after a massive event resulting in thousands of claims, the insurance industry has a poor track record of paying off 100% of covered expenses. Something called an act of god clause.

Bad enough to suggest having a good contracts lawyer go over your policy, especially if it is a big bucks premium or payout. Same thing with fire insurance. Example: In some parts of LA City in CA, even though the fire department is very good, fire insurance is a no go. Can't be had.

etrain16 · Apr 10, 2017

We bought earthquake insurance, as an adder, some years ago. At the time, it was a reasonably affordable adder. At one point, we switched insurance companies and lost the coverage. Since then, it's been hard to get, and if we could get it, very expensive. Those companies know there is a risk for a big quake in our area, and I don't think many are interested in getting nailed by the big one. I need to ask my wife again about our coverage since she's the one that handles that bill.

Foreverlost · Apr 10, 2017

Had earthquake insurance when living in the Willamette Valley, next to I-5. The deductible was 10% of the replacement cost of the house.

Now stop and think: Will banks & lenders loan $$$ for the rest of the repairs before utilities are available? Are the utilities going to be there if few people have the $$$$ to rebuild? How long do you want to live in a FEMA tent?

I moved, cheaper........................

Foreverlost,

11Charlie · Apr 10, 2017

If the Big one hits! My guess would be that if your insurance pays out it will take a long time for things to get settled. I would have plywood, tarps, screws, nails and some timber around to support and build a shelter to cover your family.

Take care of your family and preps. Be prepared for the worse and hope for the best.

Think about Katrina and the devastation that occurred and how long it took to rebuild. I know some people that say they would just bug out but that might not be so simple with no roads and infrastructure.

All of this is just thoughts. I know I didn't think about lumber and plywood and tarps till I started reading some of the threads. It kinda makes you think which is good.

teflon6string · Apr 10, 2017

Is the sill plate of your structure bolted or anchored down? Most companies (if they have earthquake insurance) will only sell you a policy if you can prove your house is securely fastened to the foundation. Some companies might still sell you a policy even if it is not. My guess is that both such policies would be written in convoluted legalese and size 2 font.

Either way, the chance of collecting a payoff in a SHTF scenario affecting thousands of homes is scant at best - if not nil. They're all playing the odds, betting it won't happen anytime soon.

thorborg · Apr 10, 2017

I would not call myself a prepper but have acquired the life skills to start from scratch should the Lord require me to do so.
That said, I have earthquake Insurance.
The only addition to the conversation I am able to pass on is if you want it, pursue it before the next one hits as Insurance Companies usually place a moratorium on allowing the sales of them for several years after one hits.
(regardless of the magnitude)

HB of CJ · Apr 10, 2017

So many variables. The Insurance Industry used to hire statisticians to figure risk mitigation. Even the big one may not render the average well built up to code wood framed perimeter foundation residential home non inhabitable. Damaged? Oh yeah. Rendered non usable? Probably not. Still livable.

What kills the home is little stuff becoming big stuff. Electrical shorts smoldering. Natural gas leaks and fire. Whole blocks of homes going up in smoke house to house. One after another. Cigs in ashtrays now on the rug. Remember, 911 will be non existent. Do not expect agencies to respond. You will on your own.

Years ago I drove a Fire Engine for an I.S.O. Class One Fire Department. Even we could not be everywhere all the time. We lost some properties. No way to avoid it. It happens. If you can afford fire and earthquake insurance, consider the pesky fact that your policy may be worthless after a major SHTF.

Out here in SW OR USA our major focus is that big fast moving forest fire. Also know as a wildfire. Our place is supposedly fire safe with all the breaks and improvements. It will make no difference. A fast moving hot fire will simply overwhelm our property. Evac mandatory. We have fire insurance. Very expense.

Respectfully.

Dipstick · Apr 10, 2017

I lived just east of Woodburn during the spring break quake in 93. Luckily I had earthquake insurance as I had a friend who was my insurance agent and was able to get me very reasonable cost coverage and was pushy that for the cost I carry the EQ insurance. The damage to my house and contents was about 20k (1/3 the value of my home and property in 89 when I purchased it). It would have taken many years for my family to recover if we had not had the coverage. I still carry EQ coverage, it went up substantially this year to $700.00. I do not think I have spent on insurance over the past 24 years what I would have lost had I not had the insurance in 93!

CountryGent · Apr 10, 2017

We added a rider to our insurance that covers damage caused by seismic activity. I forget what it costs, but it was reasonable. Adding that coverage was only one very small piece of the overall planning, preparing, etc., of course.