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by FIGMAN from Viburnum, Missouri

Last Post 40 days, 4 hours Ago


Earthquake insurance....?
Apr 18, 2008 | 9:30 PM
Category: News
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Insurance did you know.....7.0

 

 

The purpose of this blog is to help everyone become more informed as insurance buying consumers. It is my plan to post something new every couple weeks. Some of this will be very basic and some in more detail. The information will be based on Missouri but most will apply to Illinois as well. I entertain your questions on the blog and if you want to ask something in private you can email me.

Many people do not understand how earthquake coverage applies or does not apply on their home policy. There are some important things to know about the coverage.   First the standard home policy does not include earthquake coverage. In fact the coverage is excluded from the policy. Not only is earthquake coverage excluded but earth movement is as well. The Earthquake coverage is called an endorsement or an added coverage for an additional premium. In addition to having the additional premium for the coverage there is a separate deductible that applies. In most cases the deductible is a percentage of the house coverage.   An example;

If your home has earthquake coverage endorsed on the policy and your home or dwelling coverage is $100,000 and you have a 10% deductible then you would have to pay the first $10,000 of the claim. In most cases this would be pretty significant damage. According to the state department of insurance in Missouri the average annual premium for earthquake coverage is $85.00.   Call your agent to find out if you have the coverage or if it can be added. If you can't add the coverage I encourage you to call a company that offers the coverage.  

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Member Comments Total Comments: 23
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bubba-right-wing read my blog view my photos
Apr 19, 2008 | 8:06 AM

The chances you would ever use this coverage are very small. That is why your mortgage lender does not require it on a loan. People, check out a company called ANPAC. After being claim free for 3 years I now get 25% of my premiums returned to me.
FIGMAN read my blog view my photos
Apr 19, 2008 | 1:00 PM

The chance of anyone using their home policy for a catastrophic loss is also small. Some lenders do still require earthquake coverage depending on the region your home is in and depending on who is backing the loan. ANPAC is a good company, I have a number of their corporate employees as clients. Not sure what they know others don't and they are in the claims department.
bubba-right-wing read my blog view my photos
Apr 19, 2008 | 3:10 PM

I get a very good rate on auto and home and the 25% back is fantastic. With the 25% I can handle small increases in premiums but as of yet they are very competitive. sorry for any misspellllingsssss
FIGMAN read my blog view my photos
Apr 19, 2008 | 8:05 PM

Bubba are you in Missouri or across the river?
bubba-right-wing read my blog view my photos
Apr 20, 2008 | 9:55 AM

At the moment I reside for now and only four years and counting down to get away from St. Louis County (Sunset Hills). I checked your bio and others and I think rural like, farm living (no crops) will be the life for me. Texas is looking good or Tenn. which has great tax benefits for pension income. Sorry for all that information but my plans are my dreams and wants and I can not wait. Just 4 more and counting down.
FIGMAN read my blog view my photos
Apr 20, 2008 | 10:30 AM

The advantage of rural areas like where I live is low cost of living and low housing cost. The trade off for low cost is lack of metro area type services.

A good example...there is a new house down the street from me for sale. It is 1800 square feet, 2 car garage, full finished basement, deck, large bedrooms, vaulted ceiling on a nice lot. It can be bought for $140,000. Its brand new...! The annual city and county taxes combined will be around $600, its all electric and the monhtly bill will be around $175 with a monthly water, sewer and trash at about $50 per month.

But....only the basic services in the community. Its a 45 minute drive to the closest town with a Wal Mart...which is the way I like it.
jimbobbob read my blog
Apr 20, 2008 | 10:47 AM

Thanks for the info on ANPAC.....I do have earthquake coverage, but I receive no reimb on Premiums. My earthquake deductible is 10%.
FIGMAN read my blog view my photos
Apr 20, 2008 | 10:54 AM

A few years ago a major company got their hands slapped for sending back premium discounts after the premium was paid. The courts ruled the company had the ability to use the excess premiums to invest and if the premium was truly excess, the rates should have been lower in the first place.
bubba-right-wing read my blog view my photos
Apr 20, 2008 | 10:58 AM

To Figman My dream is to buy as much land as I can afford and build my house in the middle of this land in the biggest tree. Cable tv promised me this was no problem.
FIGMAN read my blog view my photos
Apr 20, 2008 | 11:09 AM

I appreciate your dream and know to some degree you would really like this. There are people who come to my area with that idea in mind. There are some issues with that concept one should consider;

First land prices are at a premium...it is not uncommon (if you can find it) for land of less than 50 acres to sell for $2500 an acre. We are talking about land of rocks, hills and poor timber. Secondly if there is no electric close by it could cost a small fortune to get the power there. The last one I know about was near $50,000. Insurance for a house in an area like this becomes an issue as well. You can get it but the cost is much higher and your choices of companies are less.
mr_wildflower read my blog view my photos
Apr 20, 2008 | 9:09 PM

I have always had Earthquake insurance..... Luckily my insurance co carries it.........
You will only need it once right......
FIGMAN read my blog view my photos
Apr 20, 2008 | 10:03 PM

Mr. Wild....that is right if its bad enough..once is all you will need it..!
Jimmy-42 read my blog
Apr 21, 2008 | 9:08 AM

I live in a 100+ year old brick home (real brick construction, not just a brick facade), very few companies will even write an earth quake policy on it, and those that will are prohibitively expensive.
FIGMAN read my blog view my photos
Apr 21, 2008 | 10:26 AM

Jimmy-42 - may I ask what expensive means? You may have more options to consider.
frenchmills read my blog view my photos
Apr 21, 2008 | 1:46 PM

I've been in Viburnum

been in smaller towns than that
julybabe read my blog view my photos
Apr 21, 2008 | 4:37 PM

If your current insurance company will not wriite earthquake coverage, there are companies that offer earthquake coverage by itself. I have several that I can write for.
Depends on where your at as to the cost.
Jimmy-42 read my blog
Apr 21, 2008 | 4:51 PM

At the time I checked, which has been about 20 years ago, I was getting quotes in the $300 to $500 range for just earthquake coverage. At that time, that was about half what I was already paying for standard homeowners insurance.

My thoughts were that the house had already been through several earthquakes with no damage. I thought that paying that much money for specific coverage for a house that had a market value of about $50,000 (at that time) was just too much. Especially with the deductible and all the caveats that were mentioned in the policies.
FIGMAN read my blog view my photos
Apr 21, 2008 | 5:31 PM

Jimmy-42 - I understand your logic. With your risk and exposure as compared to your potential loss this makes "some" sense.
If the house is still valued at $50,000 and you do not have earthquake coverage, in affect you have a $50,000 deductible now.

My recommendation would be to buy the coverage and get even a higher deductible than you ever considered. Even if your
deductible is 20% of the loss, ($10,000) and the home is totaled, you at least end up with 80% of your asset paid for. If you have a
loan and the home is totaled you would still be obligated to pay the note on a totaled loss if you do not have the coverage.
I would be interested to know what your annual cost would be with a 20% deductible.
FIGMAN read my blog view my photos
Apr 21, 2008 | 5:47 PM

Julybabe - How can I refer to you someone that may need your service? You can email me at my website address in my profile.
FIGMAN read my blog view my photos
Apr 21, 2008 | 5:50 PM

frenchmills - Well the question has to be..."why in the world were you in Viburnum.."
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FIGMAN

I live in the middle of the Mark Twain National Forest in a tiny town called Viburnum. I enjoy watching the news and keeping up with the events from local to around the world. I own businesses that consist of Farmers Insurance, AT&T Wireless, License Office, Just Like Home Laundry and Tropical Iceberg. My hobbies include golf and being involved in the community. My wife is the best teacher in the state and I have 3 great kids. www.farmersagent.com/lmay
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Member Since: 9/15/2006


 

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