What I've Learned About Earthquake Insurance Since Virginia's 5.9 Quake

I reposted a blog by Pat Kennedy earlier today in which she asks the very relevant question about whether you're current home owners policy covers earthquake damage.  Well, one call to my insurer, Erie Insurance and I learned that had yesterday's earthquake actually done structural damage to my home, I would be out whatever the cost to fix it.  With the value to rebuild my home at $621,500, I don't know about you, but I don't have that kind of money.

So here's what Erie Insurance's policy costs vs. what it offers.  The price for one year's worth of earthquake coverage is $186.  Less than half of one of my car payments.  Less than what I paid for my new Coach handbag. 

It would cover structural damage to my home, but not with the same $1,000 deductible I currently have on my home owners policy.  It would cover me once I come out of pocket 2% of my home's rebuild value.  That's $12,430.  That I can cover...and happily if my home ever ends up destroyed, or seriously damaged due to an earthquake.

Sure, the last earthquake in Virginia prior to the August 23, 2011 quake was in 1897.  The odds that we will be hit with another earthquake in my lifetime is not good.  If anything, yesterday was a wake up call that it COULD happen and you NEVER KNOW WHEN.  There's one thing I know for sure: The odds of me being able to come up with $621,500 to rebuild my home are not good either.  I'd rather pay the $186/year and know that in the event of that total freak occurence where my home is damaged in a larger earthquake that I would be covered.   That's worth it. 

I saw how quickly my home was put together.  And that's what was going through my mind as as it shook for 45 seconds during the 5.9 earthquake.  It took 8 months to build.  How quickly can it come apart?  I'm not going to take any chances.  That's what insurance is all about.  Preparing for the unexpected and catastrophic. 

 

Chris Ann Cleland, Associate Broker- Licensed in Virginia, GRI, SFR, Northern Virginia Short Sale Specialist. Affiliated with Long & Foster, 7526 Limestone Drive, Gainesville, VA 20155.  To contact Chris Ann, call 703-402-0037 or email chrisann@LNF.com.  Or you can visit her website:  www.nvarealestate.net.

Header photos taken by Chris Ann Cleland.

The opinions expressed in this post are those of Chris Ann Cleland, not those of Long & Foster REALTORS®.

 
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9 Comments on What I've Learned About Earthquake Insurance Since Virginia's 5.9 Quake

AUG
24
2011
378,906 Points 1 Featured Post Outside Blog Called Shot Master

Chris Ann, I was thinking about how I laughed when my home owners insurance agent asked if we needed earthquake insurance when I got my initial policy years ago. In fact. we both laughed and said "Nah". We felt if in NJ and although I experienced no damage, I should know that we always need to be insured for the unexpected. Hope everythng is o.k. for you and your family.
2:22pm • #1
878,677 Points 224 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

I imagine there is a lot of "earthquake insurance" being sold in your neck of the woods (and Colorado) right about now.
2:23pm • #2
548,116 Points 9 Featured Posts Outside Blog Called Shot Master

Chris:

I have earthquake insurance on my home.  Of course, I live in earthquake country (the San Francisco Bay Area), so it was a no brainer. When you said the odds of having another large earthquake in your area are very low, I though you were going to say that earthquake insurance was not worth the cost.  I hope for your sake that your next earthquake in in the year 2111.  Congratulations for deciding to buy the insurance.

 
2:25pm • #3
1,519,423 Points 275 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Hi Chris Ann.....after hearing that there were tremors on the cape, I now have earthquake riders on my homes.....not taking any chance.
2:45pm • #4
727,647 Points 103 Featured Posts Outside Blog Called Shot Master

Hi Chris Ann - It's interesting that in 12 years, I know of only one buyer who purchased earthquake insurance here in Colorado. After yesterday, I'll bet that a lot of people are looking into it - I have a call into my agent now.
4:25pm • #5
483,784 Points 59 Featured Posts Outside Blog Called Shot Master

Chris Ann - LOL, I wrote a blog about NOT having earthquake insurance and used the same graphic from MS publisher! How funny! I think the big difference is what State you live in. If my premium and deductible were the same as yours it would be a no brainer to have insurance.
4:38pm • #6
1,517,917 Points 112 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Jeana:  We're all fine.  Still finding misplaced items that have fallen from shelves here and there, but nothing broken or damaged...just rearranged.

Alan:  I would love to be an insurance agent right about now.

Evelyn:  The odds of another earthquak happening in my lifetime are right up there with my odds of being able to afford to rebuild my home out of pocket.  I'm all for the insurance.

Barbara:  I'm not a big risk taker either.

Dick:  The odds of us using our insurance is very low, but worth every penny in the event we ever do.

Cynthia:  Exactly.  Just like real estate, everything is local.
4:54pm • #7
AUG
26
2011
617,175 Points 60 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp Called Shot Master

I can understand why people in Virginia are contemplating getting earthquake insurance. Earthquake being such a rarity in your neck of the woods --- are you better off getting insurance against other disasters that are more prone to hit your area?

Check out the USGS site to see the occurrences of earthquakes http://earthquake.usgs.gov/earthquakes/recenteqsus

 

 
2:47am • #8
SEP
03
2011
1,517,917 Points 112 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Pacita:  They be a rarity in Northern Virginai, but my having the cost to rebuild my home is just as much a rarity.  We have flood insurance since we live near a 100 year flood plain. 
12:01pm • #9


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Chris Ann Cleland, Associate Broker, Northern VA

Bristow, VA

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Long & Foster REALTORS®, Gainesville, VA

Address: 7526 Limestone Drive, Gainesville, VA, 20155

Office Phone: (703) 402-0037

Cell Phone: (703) 402-0037

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