Earthquake insurance

[docstudent]

I have a slight issue that has caused me worry after the recent incident in TX.
I read that 85% of the residents did not have proper flood insurance. I live in a suburb of Los Angeles, and my condo does not carry EQ insurance. I attempted to obtain a policy, but I was informed that purchasing an individual policy is not an option, it has to be processed by the association. There are several buildings in the area that don't carry EQ insurance as well. At minimum, the units go from 390G for a single, 500G for a one bedroom, and over 600G for bedroom units. In this case, would you remain in unit without EQ insurance? It's seems irresponsible not have have your most valuable asset unprotected...I have about $180,000 in equity. I pay $1900 per month, which includes HOA, and taxes, plus $50 extra principal payment. The PMI drops in 2020, and my overall payment will decrease to $1700 a month. The unit can easily rent for $2300, but is the EQ risk too great. The neighborhood is nice, and I only see the value continuing to boom, but it would be hard for me to buy with the current rates in the area. I don't have any issue of concern with my condo besides the EQ insurance issue.

[Nutria]

Besides the HOA being shortsighted, maybe the premiums or deductible are too high to be worth it.

[scfr]

Bring this up to your HOA's governing body. They can probably have a rider added to the current policy or purchase a separate earthquake insurance policy. It's something I'd lobby hard for if I lived in LA.

Your concern is legitimate. I'd work to get earthquake insurance added instead of selling (since you like the place otherwise).

Do it now while the images of the Hurricane Harvey aftermath are fresh in everyone's minds.

We had a condo in Seattle when the Kobe earthquake hit. The issue of adding earthquake was raised to our HOA's board and the residents voted overwhelmingly to get it.

[Drake3287]

I share your worry about earthquake insurance. I purchased my home here in the Bay Area years ago which is only a few miles from both the Rogers Creek Fault and San Andreas Fault. I've literally been crossing my fingers for years that nothing would happen.

When I paid off my house early last year I figured I'd been lucky for all these years but it was time to finally get it. Plus, with owning my house out right, if something was to ever happen I'd be completely responsible for it myself. It's not like I could walk away and leave it to the mortgage company to deal with.

For me, I spend about $90. a month for pretty good coverage. At this point I figure I got away without paying for it for 25 years so I was lucky. At some point our area will have another 7.0+ quake so at least I'll be covered for the most part. Certainly a piece of mind.

As for your condo property, hopefully your HOA will come to it's senses. It's only a matter of time before a big quake happens again.

[TexasHusker]

To me, this is a common-sense risk management issue, and if the condo folks aren't willing to address it, I think you are on some decent grounds for legal action against them.

I live in the Texas panhandle, and while we don't often have flooding or earthquakes (though both have occurred), we DO have tornadoes and hail. I wouldn't call us "tornado alley", but it is a risk, and one that I have to have included in my homeowners policy.

In many parts of CA, earthquake is just as much a risk as a tornado is to me, and you need to insure against it. It is so important that, if I couldn't get that risk insured, I'd move to a place where I could!

[Thrif-t]

Heck ya I'd want it if I lived out there!

I just found out that in some parts of my town there are abandoned mines. A condo association is built on top of one and the underground mine collapsed making the condo sink and crack. The owner didn't have mine insurance and didn't even realize they were built over a mine.

I know I checked the maps our town put online to see if my house was over a mine, thank goodness it isn't, but if it was, I'd be buying mine insurance.