We’ve been exploring home owners insurance over the last week which has been difficult since we still don’t have the internet set up at the house (we’re shaking fists at you Comcast). We think we’re ready to go with Progressive because they will insure Micah’s bass which most companies won’t do. It’s the most expensive thing we own (worth more than the car) and for the time being, it lives with Dadtractor. The thing we’re stuck on right now is Earthquake insurance. Progressive actually offers earthquake insurance which Geico and few others we’ve looked at don’t.
We can’t decide if it’s worth it to get Earthquake insurance. Right now, our monthly payments would be about $50. If we add earthquake insurance, it will go up to about $110. If we get the supplemental earthquake insurance, and our house got damaged during an earthquake, our deductable is 10% of the total value of the house. Right now, we’re saying the house is worth about $400k. We know it will be worth more once it is completely done. That means we’d be responsible for the first $40k of the repairs. That’s a lot.
We looked online for advice and more information about whether earthquake insurance would be worth it. We actually found a really great article about it by United Policy Holders. What we gathered from the all the articles we read was if a home was built before 1980, is built on a slope and/or under a fault line, then earthquake insurance is the way to go. Obviously our house is new and while our property has a slope on it, the house is built 12 feet away from where the slope begins. From what we could find out, we’re not directly over a fault line.
So it sounds like we don’t need it. Then we read something else that made us think. Could we afford to rebuild this house considering we’d still have to make the monthly mortgage payments no matter what? Uh, back to square one. We can’t decide. We’re thinking of asking our Geotech what he thinks.
We don’t doubt Seattle will get hit by a big earthquake soon, but we’re not sure that it would cause more than $40,000 worth of damage to our new, up to code house. What do you think? If you live in the San Francisco or Seattle areas, do you have earthquake insurance?