Sound Off: Do you recommend buyers get earthquake insurance, why or why not?

Q: “Do you recommend buyers get earthquake insurance, why or why not?”

A: During our years as Realtors with the GRUBB Co., we’ve learned that earthquake insurance is one of the least purchased coverages available, yet we know it covers one of the most destructive disasters that can occur.

The annual premium for such insurance is generally equal to the cost of your homeowner’s insurance, but can cost considerably more, depending upon where you live and the characteristics of your home.

The deductible will be either 10 or 15% of the cost to repair/rebuild your home (ie: if the rebuild costs $1 million then the deductible will be $100,000 to 150,000). If your damage exceeds your deductible, the insurance company will pay the remainder of the cost up to the policy limit.

If you want your policy to pay for lodging elsewhere while repairs are being made, you must ask for “Loss of Use” coverage (most policies have that option but you must ask that it be be included).

If your home is well-built, adequately retrofitted or newer, you may be comfortable without earthquake insurance. If your home is older and/or if you have significant equity in your home, you might consider speaking with a professional insurance agent to get an earthquake insurance quote. It might be just the thing to ensure a better night’s sleep.

Karen Starr, the Grubb Co., 510-339-0400, ext. 224, starr@grubbco.com; Brenda Schaefer, the Grubb Co., 510-339-0400 Ext. 352, bschaefer@grubbco.com.

A: Having experienced firsthand two devastating earthquakes (Managua 1972 and San Francisco 1989), earthquake issues are close to my heart. As a consultant I provide my clients with information so that they...