Does anybody have earthquake insurance?

[terracore]

I just got a no-obligation quote for $346/year for $208k coverage. The paranoid side of me says that's a good deal. The frugal side of me says "the big one" isn't coming in my lifetime. Thoughts? Suggestions? Discussion?

[SBH]

We opted for earthquake insurance since our house is paid for, but we pay over $600 per year. Where did you get your quote from?

I tried to join Paranoid Anonymous but they wouldn't tell me where they meet.

[terracore]

The quote came from our Dongbu insurance agent. It's not through Dongbu though, its through Centauri Speciality Insurance Company.

I tried to join Frugal Anonymous but I was just too cheap.

[mac nut]

You guys should write for Jay Leno!

Mac nut

[ericlp]

Ya know, you can insure anything or anyone for X amount of cash.

Insurance is a scam and a waste of cash IMO. Since I own and my house and is paid for I opted out of ANY and ALL insurance. I probably should buy some renters insurance. I might feel better leaving my house for weeks at a time even tho, I do have good neighbors --- That only goes so far. Plus renters insurance is pretty reasonable.

[SBH]

I agree with you about insurance companies, but I sleep better at night knowing I'm not going to loose everything in an instant, that's worth at least a dollar per day. We live on a volcano and the 6.7 Kohala earthquake of 2006 is still fresh on my mind.

http://en.wikipedia.org/wiki/2006_Hawaii_earthquake

Kalapana had a 7.7 earthquake in 1975 and a 7.9 occured in 1868.

http://hvo.wr.usgs.gov/earthquakes/destruct/1975Nov29/

The 2006 Hawaii earthquake was an offshore earthquake occurring 21 kilometers (13 mi) southwest from Puak#333; and 21 km (13 mi) north of Kailua-Kona, Hawai#699;i, just offshore of the Kona Airport, on Sunday October 15, 2006 at 7:07:49 AM local time (17:07:49 (UTC)). It measured 6.7 on the moment magnitude scale, and was located at 19.820°N 156.027°W, at a depth of 29 km (18 mi). It produced several aftershocks, including one that measured a magnitude of 6.1 seven minutes after the main shock. The Pacific Tsunami Warning Center measured a four-inch (102 mm) tsunami on the coast of the Big Island.

The most severe damage caused by the earthquake was focused on the north and western sides of the island of Hawaii. Damage was also quite heavy on the eastern side of Maui, and minor damage spread all the way out to western Oahu, 170 miles (270 km) away from the earthquake's epicenter. On the Big Island, many houses had large cracks and broken windows, and at least 61 buildings were destroyed and red-tagged by officials. Almost all houses in west Hawaii reported extensive internal damage but most avoided significant structural damage, the reason being that most of the buildings in the area around the epicenter of the earthquake have been built in the last few decades and are well constructed. Even so, over $200 million in damage occurred.

The largest and most luxurious hotels on the Island of Hawaii also happened to be clustered within ten miles (16 km) of the earthquake's epicenter along the Kohala coast. The 1965 Mauna Kea Beach Hotel had its entire south end collapse, and the hotel's top floor was considered "destroyed." The hotel closed December 1 after a month-long inspection revealed that the building was unsafe and in danger of collapse. After a $150 million renovation, the hotel reopened in December, 2008. The Hapuna Prince Hotel was temporarily evacuated after the earthquake due to structural damage, broken glass and flooding caused by broken water pipes.

Many roads and bridges collapsed or had deep cracks, and clean-up crews had to work for days to remove debris from the countless landslides. Many landmarks on the island were greatly affected. The Kalahikiola Congregational Church in Kohala was destroyed due to the collapse of the church's stone walls; the Hawi smoke stack, a relic of the old sugarcane trade, completely collapsed as well. The Hulihee Palace in Kailua Kona suffered extensive structural damage. Another popular tourist area, Kealakekua Bay, home of the white monument to Captain James Cook, was swept over by massive landslides that caused the entire bay and its surrounding areas to momentarily disappear in a thick cloud of brown dust.

[Kapohocat]

“You've got to ask yourself one question: 'Do I feel lucky?' Well, do ya...?” - Clint Eastwood

We went without hurricane, but do have earthquake insurance.

[coppercoin40]

I agree that insurance is a scam. If you have an incident that the insurance has to pay out on, they recollect their payout by raising your insurance rates. If you do purchase insurance and at some point have a pay out for earthquake damage, I think the best thing you could do is to cancel the insurance as soon as the payout is received to prevent having to pay back through raised rates. Although I am not sure if this would affect the next chosen insurance company rate. Paying insurance is like paying for the opportunity of a chance future loan that then will paid back after receiving it at an increased rate.