A: There is no doubt that we will encounter more earthquakes in the future so having earthquake insurance may create a desired peace of mind. Many of our clients do not purchase earthquake insurance as it come with high premiums and deductibles, thus a financial investment that may never see a return.
I recommend that before purchasing earthquake insurance you consult with a structural engineer to get up to speed on your home’s structural integrity. They will advise you on areas that may need seismically upgrading to help mitigate potential earthquake damage. Choosing to seismically upgrade your home comes with an added bonus; safety and protection (no brainer) and increased home value.
Reviewing the JCP report on your home will describe all the environmental conditions that could affect it, including earthquakes. Homes that are built in a liquefaction zone may be susceptible to increased movement in the event of an earthquake, especially if the home is older and has not been seismically upgraded.
There is no blanket yes or no answer. Ultimately, the decision to buy earthquake insurance depends on the soils condition, location of the property and the structural integrity of the home.
Ashley Henderson-Condon, Haven Group at Compass, 415-841-2118, [email protected].
