86% of Cailifornia without earthquake insurance

[southsider2k5]

http://www.tdn.com/articles/2006/03/22/biz/news04.txt

 

I guess they expect FEMA and the taxpayers to pay for their new half million dollar houses?

[EvilMonkey]

How do they get home loans without that? My previos house was in a once-in-a-hundred-years flood plane, and I had to get flood insurance before they would give me a loan. Youwould think the mortgage companies would demand it before shelling out the big bucks. Well, we should tell them all to follow their houses off the cliff into the ocean, or into the crevase, because we shouldn't be bailing them out either.

[iWiN4PreP]

I had to get hurricane insurance in florida.

[Queen Prawn]

How do they get home loans without that?  My previos house was in a once-in-a-hundred-years flood plane, and I had to get flood insurance before they would give me a loan.  Youwould think the mortgage companies would demand it before shelling out the big bucks.  Well, we should tell them all to follow their houses off the cliff into the ocean, or into the crevase, because we shouldn't be bailing them out either.

 

Ditto on the flood plane insurance thing - which thankfully they took away in my area - that crap was about $1K for a years' worth of insurance. I, too, am surprised that they can get the house without earthquake insurance of some sort.

[Chisoxfn]

The problem with earthquake insurance is most of its a total scam. People figured that out the last few earthquakes. People used to have earthquake insurance and than when homes were destroyed it never paid out like expected and there were all these news stories out here about how bad it was and insurance companies started to incredibly rip people off.

 

Its pretty pathetic too, considering homes probably should have that type of coverage.

[NorthSideSox72]

I am really, really surprised that mortgage banks are not requiring it in CA, as well as anywhere else in an earthquake-heavy area (along the Pacific coast, in the New Madrid region, the Upper Hudson valley, etc.). I had it when I lived in Memphis, because of New Madrid.

 

I checked, at that time, with my homeowner's insurance company (USAA), and they made it clear that the earthquake rider covered any damage resulting from a quake, even if the damaging element wasn't the quake itself (i.e. mudslides from the quake, etc.). That is the key to an earthquake rider. If you get that rider, make sure it will cover the entire cascade of earthquake-caused events, not just the earth opening up. That is where the "scams" come into play - that technicality. That happened with Katrina - hurricane insurance didn't necessarily cover flooding, even if caused by a hurricane.

 

USAA is a really good insurer (and not for-profit, they are a co-op), though, so I'm a bit spoiled. But I highly recommend to everyone that if you have a particular high-risk event in your area, that you check the exact conditions for payment.

[WilliamTell]

If I lived there I'd have earthquake insurance, but on the other hand, I live in Iowa and I don't have flood insurance.

[hi8is]

http://www.tdn.com/articles/2006/03/22/biz/news04.txt

pay for their new half million dollar houses?

try 3/4 of a million +

 

f*** this state for young, just starting out people like me =D

[NUKE_CLEVELAND]

I am really, really surprised that mortgage banks are not requiring it in CA, as well as anywhere else in an earthquake-heavy area (along the Pacific coast, in the New Madrid region, the Upper Hudson valley, etc.).  I had it when I lived in Memphis, because of New Madrid.

 

I checked, at that time, with my homeowner's insurance company (USAA), and they made it clear that the earthquake rider covered any damage resulting from a quake, even if the damaging element wasn't the quake itself (i.e. mudslides from the quake, etc.).  That is the key to an earthquake rider.  If you get that rider, make sure it will cover the entire cascade of earthquake-caused events, not just the earth opening up.  That is where the "scams" come into play - that technicality.  That happened with Katrina - hurricane insurance didn't necessarily cover flooding, even if caused by a hurricane.

 

USAA is a really good insurer (and not for-profit, they are a co-op), though, so I'm a bit spoiled.  But I highly recommend to everyone that if you have a particular high-risk event in your area, that you check the exact conditions for payment.

 

 

USAA is a really awesome company to deal with. I have my car insurance with them, car loan and I will possibly be taking out a mortgage with them this summer. I cant say enough good things about them.