I live in the Pacific Northwest and so preparing for the big one is a factor. Earthquake insurance for my residence is approximately $1200 per year. Although I like the idea of this insurance I wonder if the insurance companies will simply go bankrupt if/when the big one hits as they become overwhelmed by claims.Will there be any sort of pay out if the insurance company folds? Thanks for your thoughts.
Before deciding check out Consumer Reports and Nerd Wallet.From a financial standpoint,Liberty,Farmers,Allstate and Statefarm are financially sound..
I unfortunately don't have much insight to share, but I'm also in the PNW and I've wondered about the same thing. I have homeowners through State Farm and their quote was about $700/yr higher if we add earthquake coverage….as of now I don't have it, but watching what's happened with fires and hurricanes this year make me wonder if it's worthwhile. Alternatively, I could take a few years of premiums and have an engineering firm do seismic retrofits to the house….nothing is a guarantee, but I'd rather prevent a problem than insure it. Realistically I'll probably just wait until it's too late and deal with what may come. haha. Let us know what you decide.