Droski, do you have earthquake insurance? Do you recommend earthquake insurance for your clients in California or is that not something you wade into? I just bought a house near the New Madrid fault in NE Arkansas and am trying to decide what to do. It's really expensive (800 a year) and there is a high deductible (20% of home value). There hasn't been an earthquake here since 1808 (or something) that would pay out a red cent but they say we are overdue for a big one. The one that hit in 1808 made the Mississippi run backward and did damage in Washington DC they say. They're supposed to hit on average every 75 years (I have my doubts about that number being anything truly scientific). I've talked to a few people around here. Some scoff at it (including the insurance salesman) and other people have it, but these are mostly financially secure older people with lots and lots of savings. Anyway, I figured that you had probably thought about the costs/benefits of earthquake insurance more than anyone else I know.
Don't know if it matters, but house is brick. I just read that eq insurance was almost three times as high for brick houses.
I don't have it. Primarily because I didn't have a ton of equity in my home and my deductible would be something like $100k. Now last time we had a major earthquake people just increased their estimates of the work done by the deductible which I'm not convinced fema is going to not catch this time. Also fema came in and gave people money AND no interest loans. Now that I have a decent amount of equity in my house I figure it's time for me to get it, but earthquakes happen all the time here. I wouldn't get it if I was you unless you are paying cash for the house or something. Worst case you walk away from the property if it actually happens and it's beyond resonable repair and fema gives everyone the middle finger both which seem highly unlikely to me
All brick or brick facade? I wouldn't want to own such a house in an actual earthquake at all. Anything brick here fell down last time. You might want to ask ip if he has knowledge of the odds. It's in his area of study
Not really my area of expertise, but I know a little. The periodicity of earthquakes is, as you suspected, not terribly refined. The reality is this: if that particular fault has a serious quake, almost everything is going to go down because of the substrate of the area. If you want to get cynical, such a quake would surely result in a federal disaster area and you'll get assistance options. The science says a quake could occur there at any time, but that doesn't mean one is imminent. Just that the conditions are right-- energy has built up between those two tectonic boundaries and they will eventually slip and release it. Not very helpful, I know.
Thanks man. No, I am just paying about 13% down. I don't even have enough saved up for the full 20%. Deductible would well exceed what we have in it. I hadn't even thought about walking away, but that makes sense.
No president is going to say f u to a bunch of survivors of a natural disaster even if they should have seen it coming. See Katrina or the northridge quake in la
Good stuff. Yeah, if we live here til we die, I think odds are good that an earthquake will eventually hit. I hadn't thought about the equity in the home variable. I guess I am ok with the ethics of walking away from a house. Not sure. Never have thought about it before.
I feel like 208 years since the last earthquake is enough time to give people the benefit of the doubt. Tennessee doesn't even have building codes for earthquakes, despite West Tennessee being along the fault. Arkansas does, though.
If you could guarantee me I could get away with inflating the estimate by the deductible I'd definetely get it myself, but if the house is well built the chances of having major structural damage is pretty minimal even in huge earthquakes and that's what it would take for me to blow through that deductible. And my house has been through a bunch of major earthquakes in its time. Of course people have been building houses to withstand earthquakes here forever. Your house might not be built with earthquakes in mind.
I'm and the people 20 miles around me are pretty much in a liquidification zone. Or is that not what you are talking about?
The house is well built by the standards I'm used to. Don't know if it was built with an earthquake scenario in mind. That's something I need to find out.
Winter of 1811-1812 is the actual year the earthquakes hit. Wikipedia article on it is interesting. https://en.wikipedia.org/wiki/1811–12_New_Madrid_earthquakes My house is about 20 miles N-NW of the southern portion of that orange zone in the map.
Is it bolted to the foundation? Is the frame wood? If so. I think you are ok. The real answer to this is if there is a major earthquake in the next say 10 years you will be happy you got it. If there isn't you won't. But I know that's a bad answer
Got it. Unfortunately most of southern California is in a "liquefaction" zone or at least according to the online map. Or are you saying his area is better?
Inflating the estimate to cover the deductible was common down here for years after hurricanes, but last hurricane that hit my house, they fought me tooth and nail over the cost of everything. I know people that pocketed thousands of dollars after Andrew.