Earthquake Insurance needed?

[livefree00]

Do you currently have earthquake insurance?
I am considering buying a home in Sommersett area but State Farm is quoting $2000 per year for adding earthquake coverage with 10% deductible. It's more than half of total home insurance premium!

Do you think it worth paying for it for peace of mind?
If you don't currently have it, what is your reason?

Appreciate sharing your thoughts.

[MrWillys]

Originally Posted by livefree00

Do you currently have earthquake insurance?
I am considering buying a home in Sommersett area but State Farm is quoting $2000 per year for adding earthquake coverage with 10% deductible. It's more than half of total home insurance premium!

Do you think it worth paying for it for peace of mind?
If you don't currently have it, what is your reason?

Appreciate sharing your thoughts.

As a Eastbay California native I never bought earthquake insurance. With a construction background being young I always thought I'd rebuild myself should I need it. Retiring to Northern Nevada was a choice. My thought was we'll always have water with Lake Tahoe and there's very little chance of a major quake here. The fault that lies along the Eastern Sierra does shake at times but typically they're small 5.0 or less. Having lived through 7.0 in the bay 5.0 is nothing. This far North more than 4.0 is really rare. Good luck making your choice. I've only felt 2 small quakes since moving here in 2011.

[Teacher Terry]

It wasn’t worth the cost to me and no one I know has it. Somersett does tend to get more earthquakes. Shortly after some of the homes were built some people had cracked walls from an earthquake. I don’t remember what year that was.

[ChrisMT]

I do not know anyone who has had major earthquake damage to their home.

I do know many who have dealt with faulty home builder issues on newer homes, foundation cracking from ground settling and in Reno, copper pipes sweating in slab foundations causing all sorts of damages. I personally would not buy a home on slab foundation here and if purchasing new, make sure the home has a warranty for a few years until the kinks are worked out. Check on the reputation of the builders etc. Get a home warranty policy from the seller if possible or purchase it when you buy. I know someone who had $25,000 in water damages from the pipes and slab foundation issue that had it all covered with that yearlong warranty.

Southwest Reno has had a number of smaller quakes in recent years. I think it has to do with the geothermal plant over there more than natural activity…just my opinion on that. I do remember reading a local article about walls cracking in some homes in Reno more than the occasional small cracks every home I lived in sometimes developed.

We do have the potential for major earthquakes here, so it is definitely a consideration for your insurance needs. I do not know anyone who has it, it is extremely expensive.

Edit to add the major home damages from natural disaster that have been more common in this area to my knowledge has been from flash flooding and wildfire. There are certain locations known for these risks.

[212david51]

The premium is high and the deductible is big. I would rather spend the extra money on six inch studs or even double four inch studs, better construction on a good solid foundation and take my chances.