Earthquake insurance

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Wayne Grow's picture
Wayne Grow
Status: Member (Offline)
Joined: Sep 19 2008
Posts: 22
Earthquake insurance

 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. 

Edwardelinski's picture
Edwardelinski
Status: Gold Member (Offline)
Joined: Dec 23 2012
Posts: 325
Earthquake Insurance

Before deciding check out Consumer Reports and Nerd Wallet.From a financial standpoint,Liberty,Farmers,Allstate and Statefarm are financially sound..

Thetallestmanonearth's picture
Thetallestmanonearth
Status: Gold Member (Offline)
Joined: Feb 28 2013
Posts: 324
re: Wayne

Hi Wayne,

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.

 

AStuart's picture
AStuart
Status: Member (Offline)
Joined: Dec 4 2017
Posts: 2
How much damage do you
How much damage do you anticipate sustaining? ie what would the insurance be covering?
 
You might be able to put a couple grand away a year for a rainy day fund.
 
Alternatively, you could put your money into Earthquake retrofitting so that your home is unlikely to sustain damage. 
 
If you are prepping for something specific like an Earthquake, there are other options besides an insurance policy that may or may not pay out.
 
It might sound a little paranoid, but I think you have a point about Insurance companies going under after a large-scale natural disaster. 

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