To the Editor,
Just a note to advise the unwary.We recently checked on our deductible on our house insurance as we thought it was $2,500. It became clear our earthquake coverage had its very own deductible of 10 per cent of the house’s replacement value. That worked out to $46,000. Yikes!
We thought, why didn’t our insurer tell us before it was a whole separate deductable than the regular house insurance?
Most earthquakes, unless they totally destroy your house and probably everyone else’s, usually mean cracked drywall, a broken window or two, and a chimney coming down if you have one. This would mean you pay for everything.
So why then pay a high premium for earthquake coverage when you’re only going to get market value—not replacement value—by the time the adjuster is through with you?
It just isn’t worth it, unless there is a catastrophic earthquake of 9.0 on the Richter scale.
Please check your real deductible if you are paying through the nose for earthquake insurance.