Jess stullman, I am currently buying and selling short sale prope (Momo fundraising )

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Rainmaker
3,016,242
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

The reason the quake insurance premiums and deductibles are high is because you are probably in an earthquake area.  How much do you want to risk on a major asset? I suggest you have a serious conversation with your insurance broker and/or financial advisor.

Feb 01, 2018 08:09 AM
Rainer
58,398
Steve Penner
Royal LePage / Moneyledgers Software - Winnipeg, MB
REALTOR / Owner of Moneyledgers

 ... can you absorb a 650,000 loss... and not be very concerned or impacted by it?...  I think that is the bottom line in most cases.  Personally, I would either move or get insurance.

Feb 01, 2018 08:25 AM
Rainmaker
1,369,977
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Jess stullman I just pulled this off of the Internet:

Hercules has had: (M1.5 or greater)

  • 0 earthquakes in the past 24 hours
  • 1 earthquake in the past 7 days
  • 15 earthquakes in the past 30 days
  • 326 earthquakes in the past 365 days

It might be a no brainer unless you can self insure a loss.

Feb 01, 2018 09:41 AM
Rainmaker
2,936,108
Richard Weeks
Dallas, TX
REALTOR®, Broker

I think I would talk to an insurance agent that you trust.  Good luck.

Feb 01, 2018 07:51 AM
Rainmaker
1,046,283
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

This is a great question for your homeowner insurance company/agent Jess stullman 

Feb 02, 2018 04:11 AM
Ambassador
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

I have no idea! We don't have earthquakes in our neck of the woods!

Feb 01, 2018 10:23 PM
Rainer
226,564
Caroline Gerardo
CMG Financial - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

$650000 value with the land value being $300000?  The answer is in the numbers.

I predict we are due for a big earthquake when I don't know.

My sister owns a house in Santa Cruz that is single story. When the Loma Prieta earthquake hit her chimney she had the 1989 equivalent to a CA policy which had a 15% deductible on a house with the replacement cost of $400000 - total value about a million ( as in most California coastal the value is mostly land but earthquake insurance doesn't cover that. Her deductible ended up being $60000.00. the fireplace, chimney, and flue had to be replaced, roof repairs as well - total cost of repairs $19800. They stayed with family for a week or so when the messy dusty work was being done but if they had to stay in a hotel a month that might have cost another $4000 - She paid for the insurance of $9500 a year policy BUT was paid zero on the claim as she didn't meet the deductible. Cost of the policy wasn't worthwhile.

63 people died in the Loma Preita earthquake, a few people in her area died, had total cave-ins but most only the chimney was damaged. Today most houses that were repaired after the 1989 earthquake chose to remove the fireplace and have no chimney today, avoiding a brick and mortar crumble down.

I had a client also with earthquake coverage in Northridge who after the 1994 quake there suffered about $9100 in damages, also well below the threshold for getting any help on a claim.

57 people died in the Northridge quake

 

If there is a FEDERAL emergency declared. FEMA has given out maximum $32000 to homeowners who had 90% loss or more. However, they did not, do not pay all claims, you must demonstrate need (be poor) FEMA rejected 1.3 BILLION dollars in claims in the 1994 Northridge quake. I would not count on FEMA to help much

You own your house free and clear and have a HUGE cash cow that cannot run from an earthquake. How close are you to the  Alquist Priolo fault zone? Pinole Valley High School and the Crispy Creme are built on the fault and would be on soil that liquidates.

 Alquist-Priolo fault zone

The best way to decide is:

How much brick, mortar, fireplace, granite, slab do you have to replace?

Come up with a cost:

Get two quotes for the insurance and read the fine print on deductible.

Assume there is an 8 point quake in San Francisco and your house falls down. Do you have the cash resources to rebuild?  Where will you live in the temporary chaos that occurs?

How much peace of mind do you need to relax?

I might suggest you have a mortgage - the bank doesn't rebuild but if you chose no insurance and there was a big one you might have more options...

Hard to answer the question without knowing how much money you have, age, construction type of house. If house is 2 story with lots of brick -get the insurance its the only choice

 

Feb 01, 2018 12:43 PM
Rainmaker
530,457
Peter Testa
Nationwide Homes - Danbury, CT
PETER TESTA

I know neither you nor I could afford a $650K loss so I would get the insurance but I would take a lower priced plan with a higher deductible. That way you may be on the hook for some money but it won't be $650K. 

Feb 01, 2018 09:52 AM
Rainmaker
433,227
Greg Large
ERA Real Solutions - Grove City, OH
A Tradition of Trust

If your house is in an earthquake area and you do not have insurance, then you are self insured to that natural disaster.  Only you know if you have the resources to recoup from such an incident.  Premiums may be high, deductibles may be high but no insurance and your house is a total loss?

Feb 01, 2018 09:22 AM
Rainmaker
1,220,367
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

As a fellow Californian, I have EQ insurance on all four of my homes.  The deductible is not horrible and is considerably less than the price of rebuilding the home.

Feb 02, 2018 08:59 AM
Rainer
2,300
Jacob Brown
Livewebtutors - Sydney, AU
Livewebtutors provides assignments to students.

You should take earthquake insurance. 

Feb 02, 2018 12:08 AM
Rainmaker
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Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

Well, living here in CA, I'd definitely get an earthquake insurance with or without financing request..... Too risky not to.

Feb 01, 2018 11:25 PM
Ambassador
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

better to have it and not need it than to need it and not have it.

Feb 01, 2018 10:17 PM
Rainmaker
728,965
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

It's better to have at least some piece of mind (insurance) even if its not total protection in the rare event of an earthquake damaging your home.

Feb 01, 2018 09:10 PM
Ambassador
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Jess stullman - good answer from Steve Penner.

Feb 01, 2018 08:54 PM
Rainmaker
360,401
Susie Kay
Ultima Real Estate - Plano, TX
North Dallas Specialist

I used to live in CA and once was about to purchase a home in Hercules.  I would get the earthquake insurance.  Or sell your home and move to Dallas where you can get a nice home half the cost of your Hercules home! 

Feb 01, 2018 06:20 PM
Ambassador
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Fred Griffin, on leave of absence from ActiveRain
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

   Sounds like insurance for a  Florida home that was built beyond the Coastal Construction Control Line (CCCL).  

Feb 01, 2018 03:58 PM
Rainmaker
4,910,508
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

If I lived there, I'd have it for sure..... I wouldn't want to absorb that loss!!!

Feb 01, 2018 10:56 AM
Rainmaker
995,047
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Jess stullman 

I live between two faults south of you in Santa Clara County. During Loma Prieta  7.8 I  bought a 10% deductible Earth Quake coverage and realized no matter what your damage will always be under that.   If you home is not built by adode clay and has solid foundation you will never be able to use it.  As a realtor I am not aware any clients even bother to buy Earth Quake insurance as it is considered not practical.  

Hope that helps.

Sam

Feb 01, 2018 09:52 AM
Ambassador
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

I can't provide advice but I bet your insurance agent can. Or a financial advisor.

Feb 01, 2018 08:52 AM
Rainmaker
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Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Jess,

Talk to your financial adviser.  A

Feb 01, 2018 08:40 AM
Rainmaker
5,310,255
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Discuss this with your trusted insurance agent.

Feb 01, 2018 08:27 AM
Rainmaker
537,681
Maria Sapio
Keller Williams of Central PA - Carlisle, PA
Real Estate Agent- Carlisle, PA. Mariasapio.com

Thank you Nina for your response -

Jan 17, 2019 10:00 AM
Rainmaker
1,493,598
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL
www.SIBRealty.org 305-931-6931

Great answers are here.

Thank you.

Oct 08, 2018 09:32 AM
Rainmaker
1,066,592
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty

Thank you. Good answers are here. 

Oct 08, 2018 09:32 AM
Rainmaker
4,041,547
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

If there was a chance of losing your $650,000 investment, I would.

Feb 03, 2018 07:57 AM
Ambassador
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Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Best bet, Sell the house and take the money and retire to Wisconsin where you can buy a comparable home for $100k and enjoy the excess money.

Feb 02, 2018 09:58 AM
Rainmaker
4,796,627
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

This will be a personal choice for you.  We have similar issues with Hurricane Insurance here in FL.  I have elected to buy it (for now).

Feb 02, 2018 06:16 AM
Rainmaker
3,203,160
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Move or insure unless you are a gambler who can afford to lose $650,000 with one shake of the dice!

Feb 02, 2018 04:59 AM
Ambassador
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Paul S. Henderson, REALTOR®, CRS
RE/MAX Northwest. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

We both live in an earthquake belt and I know many of my clients have dropped the earthquake insurance because of that deductible being so high.

Feb 01, 2018 11:00 PM
Ambassador
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Insurance is for protection and is not cheap but neither is losing a $650,000 investment if the earth starts to rumble.

Feb 01, 2018 07:59 PM
Rainmaker
2,435,533
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Understandable that this would come up.  If in a potential zone, it wears on you. If not, who cares? Que Sera Sera To spend that type of money for years in the event of something happening is money thrown away until you need it. When is that? If one has money fine. If not, find your peace

 

Feb 01, 2018 06:47 PM
Rainmaker
3,978,939
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

How would you feel or what would you do if the house got destroyed tomorrow

Feb 01, 2018 05:48 PM
Rainmaker
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Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

This should be a discussion with your family, your accountant and your insurance carrier. 

Feb 01, 2018 02:50 PM
Ambassador
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Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

That is a good question for your insurance company.

Feb 01, 2018 01:22 PM
Rainmaker
990,691
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

My question would be do you have the wherewithal to self-insure? If yes, then fogetaboutit. If no, you should get some.

Feb 01, 2018 09:23 AM
Rainmaker
2,773,155
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

I would not put myself in a position of not having earthquake insurance. Who can afford a catastrophic loss if the house were to crumble like a house of cards?  I'd be shopping around and find the best price for the most coverage. 

Feb 01, 2018 08:39 AM