According to the Insurance Information Institute, this … Coverage for wood-frame homes costs less than coverage for brick homes, as wood-frame homes “flex” and are subject to less damage in case of an earthquake. Your Oregon earthquake insurance deductible works as a stated percentage which is anywhere from 10% – 25% this contrasts to a standard home insurance policy which generally has a dollar amount such as $500 or $1,00 for claims such as fire and theft. High deductibles allow for coverage to be more affordable to homeowners. On only seven occasions did the time between quakes span more than 300 years. Experts have recorded more than 6,000 earthquakes in Oregon, most too small to feel, since 1841. Linda Mark, 36, bought her first house in February. © 2021 Advance Local Media LLC. Community Rules apply to all content you upload or otherwise submit to this site. Take it from Ms. Mark. As a result of oil drilling, some cities experience an uptick in seismic activity, such as Oklahoma. Email DFR.FinancialServicesHelp@oregon.gov. “Those contracts need to be fair," Sunderland said. According to USAA, the average cost for earthquake insurance annually is between $100 and $300. More than three centuries ago, the last great Cascadia Subduction Zone quake struck offshore. 350 Winter St. NERoom 410PO Box 14480Salem, OR 97309, 503-378-4140 (Salem) Earthquake insurance is worth the money and the piece of mind. Earthquake is normally defined in your policy as “shaking or trembling of the earth, caused by volcanic activity, tectonic processes, or any other cause.”. He explained in depth how screwed the majority of Portland is when the next big quake happens. About 20% have earthquake insurance, according to the earthquake authority’s estimates. This type of property insurance isn’t a part of your regular homeowners, condominium or renters insurance, so it is offered by insurance companies either as an add-on to your homeowners insurance policy or as separate insurance from an alternate provider. So goes another do-as-I-say-not-as-I-do column. Renters can get earthquake insurance for their personal belongings. Since many homeowners’ biggest investment is their home, earthquake insurance may help protect that investment. Earthquake insurance is worth it if you live in a high-risk area Earthquake insurance is not included in standard homeowners insurance but must, instead, be purchased as a separate rider. Most policies state that any shocks that occur within a 72-hour period constitute a single earthquake. Some argue the insurance is not worth the money for homeowners. --Brent Hunsberger. Geologists say the ground here could shake for four minutes. are more likely to experience earthquakes. Always verify that the company or individual you are working with has a license. An earthquake can wreak havoc on your home. They do, however, cover shaking caused by volcanic activity and damage wrought by aftershocks within a 72-hour period. This is because most homeowners insurance policies do not cover earthquake damage.Unlike flood insurance, earthquake insurance isn’t mandated by mortgage companies, even in high-risk areas like California. In the interest of protecting your largest asset at the cost of a few hundred dollars per year, we recommend considering this important protection. We'll feel aftershocks for months, too -- some up to magnitude 7. If you live in this hot zone, which includes the states of California, Oregon, Washington and Alaska, you may find that earthquake insurance is worth it. Normally, this coverage is provided with no dollar limit and no deductible. Coverage for Mark's 1,800-square-foot, 1925 home from Safeco Insurance Co. will cost an extra $20 a month, said her broker, Mark Strauss of Leonard Adams Co. in Portland. "I knew the Portland housing earthquake risk," the Southeast Portland resident says. It can be purchased through the National Flood Insurance Program or some private insurers. 2. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. The greatest seismic activity in the past two decades occurred in the Portland metro area and the Klamath Falls area. All rights reserved (About Us). But It Doesn’t Seem Worth the Price. The company enjoys good ratings on BBB and AM Best. If you are considering buying a home in areas that have frequent earthquakes, you may want to entertain purchasing earthquake insurance. Here’s an interesting article out of Alaska discussing whether earthquake insurance is actually worth it. It's a low pickup rate for a state that's among the three likeliest to suffer a severe quake. Registration on or use of this site constitutes acceptance of our User Agreement, Privacy Policy and Cookie Statement, and Your California Privacy Rights (each updated 1/1/21). Why Is Earthquake Insurance Important in Oregon? Earthquake policies won't cover damage from landslides or tsunamis, even if earthquakes caused them, state officials say. Earthquake insurance won't cover incidental damage from a small quake. Earthquake insurance generally comes with a … In other words, the deductible is a percentage of the amount of coverage, not a percentage of the amount of loss. Experts have recorded more than 6,000 earthquakes in Oregon, most too small to feel, since 1841. A deductible is the amount you pay before your insurance kicks in. That's an extra $25 on your monthly mortgage payment, or about 10 fewer lattes. Homes in California, Alaska, Oregon and Washington are at a greater risk for earthquakes than other states. But she started shopping for earthquake insurance in November -- pre-Haiti and Chile. But is it actually worth it to have earthquake insurance? Earthquake insurance on a wood frame home built in Napa after 1990 with an insured dwelling value of $400,000 would cost $1,191 in … To figure out if an earthquake insurance policy is worth it for you, start by establishing the potential risk of where you live. "I'm a geologist," she adds. According to State Farm Agent Tom Plooy, the endorsement on his earthquake coverage as a homeowner is 20 percent, meaning the deductible is 20 percent of the full coverage plan. Research by Goldfinger for the U.S. Geological Survey puts the odds of a powerful quake off the southern Oregon coast in the next 50 years at one in three, Goldfinger says. January 31, 2016. Additional living expense normally extends for up to one year after a loss to pay extra expenses for moving and renting other space while your home is repaired. Homeowners in states like Alaska, California, Oregon and Washington have an average earthquake insurance cost of $800 a year, while the average cost in … Your basic homeowners and renters insurance won't cover the damages from earthquakes, flooding, mudslides, landslides or sinkholes. 888-877-4894 (toll-free in Oregon)503-947-7862 (fax)​​​​Contact usAbout us​, Your browser is out-of-date! Purchasing earthquake insurance could be worth it even if you don’t live near a fault line. It has known security flaws and may not display all features of this and other websites. So if your home is worth $300,000, your deductible would be $60,000. In some cases, older homes may have to be retrofitted to qualify for coverage. It's catastrophic insurance. About 20 percent of Oregonians have earthquake coverage, which must be purchased separately. With earthquake coverage, your deductible is based on a percentage of your overall policy limit. Who Needs Earthquake Insurance? "I don't want to be stuck with a mortgage and a house I couldn't live in." If she goes with Safeco, Mark's deductible will run from $34,500 to $57,500 just to replace the structure. Mark can get coverage from GeoVera Insurance, a California-based earthquake insurer, without retrofitting her house, for $38 a month and a $30,200 deductible. Earthquake insurance is a form of insurance that protects your home and your personal property if an earthquake ever damages or destroys them. I wasn’t certain how the underwriting worked and it appears that most deductibles are a percentage of the value of your home and they only pay out for large scale disasters instead of minor earthquake. Some questions to ask yourself: Is your home in an area that's vulnerable to earthquakes? Your earthquake insurance deductible is … …yet only one in five Oregonians has earthquake insurance. The cost for similar coverage on a brick or masonry home would be higher. Got the earthquake insurance after speaking with a geologist at a party. There are a few factors to consider when determining whether or not earthquake insurance is worth it for you. The earthquake insurance deductible typically is a percentage of the insured amount. He said the biggies historically are about 9.0 and happen about every 300 years here. They've documented 40 similarly huge quakes over 10,000 years along the fault, says Chris Goldfinger, head of the Active Tectonics and Seafloor Mapping Laboratory at Oregon State University. Later, my insurance carrier dropped earthquake coverage altogether. / cascadiaearthquake. The same homeowner with $150,000 in personal property coverage (contents) would have a separate deductible of $15,000. I want to run the numbers. But like most of you, I explored strapping my house to its foundation with a contractor, then a friend, before lethargy and the peaceful earth set in. Earthquake insurance is a wise investment as the best way to protect your equity from a devastating earthquake. It's what insurance was created for in the first place: Protecting yourself against a devastating financial loss that will happen at some point in the future, even if it's not in your lifetime. Older homes cost more to insure than newer homes. The answer to whether earthquake insurance is worth it depends on several different factors, including your financial situation (what you can afford), how earthquake-prone the area you live in is, and the value of your property, house, and belongings. "That probably played into my decision a little bit." Most homeowner, mobile home, condominium, and renter insurance policies do not cover earthquake damage. Brent Hunsberger | For The Oregonian/OregonLive. Allstate is a good starting point for Earthquake Insurance shoppers. Is it too costly? A survey by the Oregon Insurance Division of the 20 insurers that generate 80 percent of homeowner premiums in the state found: Earthquake insurance isn't that expensive. You can choose the amount of coverage you need as well as deductible options. Have a stash of emergency water, food and supplies. Most insurers in Oregon sell coverage with 10 percent or 15 percent deductibles. Mark figures she'll spend about $3,000 bolting her sill plate to her foundation and save $18 a month in premiums. Another deductible applies to replacing household contents, Strauss says. Even if you don't get insurance, take other precautions. Since many homeowners’ biggest investment is their home, earthquake insurance may help protect that investment. About 20,000 earthquakes hit in the United States every year, with up to 42 states considered at particular risk, according to … States located near fault lines (California, Alaska, Oklahoma, etc.) Specific claims vary but consider the 2018 Anchorage earthquake in Alaska. Your earthquake insurance deductible is a percentage of your home’s insured value. The company sets a $100,000 minimum coverage and a $500,000 maximum for coverage which is at par with most of the companies we reviewed. Earthquake risk in Oregon. Ridgecrest homeowners were fortunate in another way. It's time to endorse earthquake insurance. Some insurers won't touch homes built before 1940. Coverage for a $300,000 wood-framed home with $150,000 for personal property protection can cost $200 to $300 a year. Earthquakes aren't uncommon in many parts of the United States. Earthquake insurance is well worth it (and sometimes even required by mortgage lenders) if you live close to faults where earthquakes are common (places like California, Alaska, Hawaii, Washington, Oregon and Nevada — shaded in dark green in the U.S. Geological Survey map below). Earthquake insurance covers direct physical loss to property. Without an earthquake endorsement, your standard homeowners policy will not cover any damage caused by seismic events. Strap your water heater to the wall studs, especially a natural-gas heater. Although quakes can happen in all 50 states, some places are more prone to them, and in those cases earthquake insurance becomes a … "That won't get you insurance, but it might save your house," Kushner says. Scientists think it was a magnitude 9.0. Is Earthquake Insurance Really Worth the Cost? Is it obtainable? Older homes and those made of brick or masonry will cost you more. Only about one in five Oregon homeowners has such coverage, state officials say. He was the first person down the stairs. The 6.8 magnitude Nisqually Earthquake that jolted the Northwest in 2001 caused an estimated $2 billion in damage to homes, businesses and government buildings. This type of insurance is separate from standard homeowners or renters insurance. Some argue the high price of deductibles and premiums make earthquake insurance costly – and therefore not worth the money. Costs vary widely based on the type of house, its age, the nature of the soil, and the proximity to known fault lines. Coastal residents can get tsunami protection from flood insurance via the National Flood Insurance Program. If earthquake damage to your home is so severe that you must move out, coverage for additional living expenses is available only if you have earthquake coverage. And yet, homeowners often lack coverage when disaster strikes. Oregon is the third likeliest state to suffer a severe earthquake…. Subscribe now. When earthquake insurance isn’t worth it. So, buy earthquake insurance before an earthquake. Strong quakes centered in Washington's Puget Sound area have caused damage in Portland. That depends on your home's insured value, location, age and construction type, as well as your carrier and your deductible. If you find out earthquake insurance is only $20 a month, maybe it's worth … Facts-first reporting from the source you trust. Have a family convergence or communications plan Secure columns to the bottom of the house and the floor. Landslides, fires and hazardous spills will follow, possibly along a "hot spot" like the oil tank farms along the Willamette River in Portland. According to USAA, the average cost for earthquake insurance annually is between $100 and $300. Soon after, a tsunami will wreck the low-lying coastline. Earthquake insurance provides coverage against severe damage or total destruction of your home. Hill had written story after story about earthquake risk in the Northwest. Post-Haiti demand for his services has left him booked three to four weeks out. Earthquake insurance provides coverage for your home in the event that an earthquake causes damage to it. That's a lot higher odds than the lottery. That 6.8 magnitude shaker should've been motive enough for me to retrofit my old, 1910 wood-framed house. If the next big quake to strike the Oregon area levels your home, only the protection of an earthquake insurance … That step pays for itself in 14 years, but it also might save your home. It’s a lot of money for something that happens as rarely as a major earthquake or volcanic eruption Policies have high deductibles, ranging from 10 to 25 percent of the insured amount of your home. Earthquake insurance does not cover a loss caused by landslides, erosion, tsunami, or volcanic eruption, even if an earthquake causes them to happen. Earthquake insurance is not like health insurance or auto insurance. (Recall the one on wills?) Jay Kushner, an engineer and owner of Seismic Technologies in Portland, retrofits homes from about $3 to $4.50 a square foot of basement or crawl space. About 20 percent of Oregonians have earthquake coverage, which must be purchased separately. Earthquake insurance policies are available for homeowners, condo unit owners, mobile homeowners, and renters. Earthquake insurance isn’t mandatory. Flood insurance will typically cover damage caused by a tsunami. A 2009 survey of the Portland market indicated that earthquake coverage for a wood-frame home insured for $300,000 with $150,000 in personal property coverage could be purchased for $200 to $300 annually. You can do it yourself for less. California is the location of more earthquakes that cause damage than any other state, which makes the likelihood of property damage from an earthquake a much greater reality for people living there. When the Nisqually quake rippled through Portland nine years ago, I grabbed the edge of my desk and looked up to see former Oregonian science reporter Richard Hill headed for the exit sign. He said every insurance policy sold in Oregon, including Trexler’s, is checked by the state to make sure it does what it claims to do. Among Farmers Insurance policyholders, it's one in eight, via a third-party provider, says Jerry Davies, a company spokesman. If you make decisions based on analysis, there’s almost no way to prove to yourself that earthquake insurance is worth it (two exceptions: see below). Visit www.floodsmart.gov. In lower-risk areas, the cost of earthquake insurance is lower, so you won't be paying the kinds of premiums people pay in high-risk areas. Email DFR.InsuranceHelp@oregon.gov, Financial services But the endorsement must be specifically requested, and it'll probably tag 10 to 15 percent to the cost of your policy, Strauss says. Earthquake insurance might not seem worth it for a few reasons: It’s pretty limited — it only covers earthquakes and volcanoes and very little proximate damage related to those disasters. However, more at-risk states like Alaska, California, Oregon, and Washington have premiums as high as $800 per year, on average. 1) Quake damage rarely exceeds deductibles. If an earthquake damages your home and you don’t have earthquake insurance, you’ll most likely end up paying out of pocket to make any necessary repairs. But Kushner says he makes his own plates, which are stronger and better fits than those found at big-box stores. It is always worth getting a quote so you can make an informed decision. Is earthquake insurance worth it? A homeowner with $300,000 in dwelling coverage and a 10 percent deductible would pay $30,000 before insurance pays. And it doesn't have to be The Big One to hobble your home. If you’re a renter, buy a separate earthquake policy (also available through CEA). Insurance A company representative representing the earthquake insurance provider will be able to provide you will more details about coverage options and rates. People of greater means have a different version of sticker shock. A survey by the Oregon Insurance Division of the 20 insurers that generate 80 percent of homeowner premiums in the state found: Earthquake insurance isn't that expensive. A higher deductible may qualify you for discounts. When the big one hits, it could be stronger than those that have devastated Haiti or Chile. But retrofitting them can drive premiums down. Is earthquake insurance worth it? As you grow your equity stake in your home, an earthquake insurance policy becomes an even more invaluable preventative measure for your financial future. Most insurers place a moratorium on selling earthquake coverage for a period of time after any significant seismic event. Earthquake Insurance at All State. However, more at-risk states like Alaska, California, Oregon, and Washington have premiums as high as $800 per year, on average. The higher your risk, the more expensive the insurance. That’s about twice the … Check with your agent when purchasing earthquake coverage to make sure that the additional living expense coverage extends to earthquake damage. Learn how, Esté preparado para enfrentar desastres naturales, Oregon Department of Geology and Mineral Industries (DOGAMI), DOGAMI map of earthquakes in Oregon since 1841, U.S. Geological Survey(historical earthquakes, interesting facts), Printer-friendly tips on earthquake coverage. 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