Q: I read your column on earthquake preparedness. And although I don’t think our 11-year-old house needs structural changes, I was wondering if you have any advice on whether to buy earthquake insurance. We are new to the area, so we have no experience or feel for it.

A: Your question is a little far afield for our do-it-yourself column. But it’s a subject we’ve had to consider over the years, and, as you mention, we have addressed earthquake preparedness from a structural perspective.

We’re both 40-plus-year residents of the San Francisco Bay Area — earthquake country — and have lived through our share of shakers. We’ve seen pictures rattle and chandeliers swing. We’ve owned homes and income property and have had to grapple with the same question: to insure or not to insure against the Big One.

Here’s our take today.

We’ve always opted not to purchase earthquake coverage. For us, it boiled down to a purely business decision. The cost of coverage was so high, the deductibles so high and the exemptions so many that we simply decided to assume the risk of loss rather than pay the premium. We took the position that the unlikelihood of a catastrophic event outweighed the cost of coverage. Ultimately, a decision will rest on your view of the risk and your comfort level in assuming that risk.

No one knows when or where the Big One will hit. The only major quake we have experienced was the Loma Prieta quake of 1989. We both lived in Alameda at the time, only a few miles as the crow flies from the ill-fated Cypress Structure. That elevated freeway collapsed, but our vintage wood-frame homes survived with no damage. We found out later that the earthquake fault that gave way was several miles to the west, across the San Francisco Bay.

The first thing to find out is if you are in a known earthquake fault area. When you purchased your home, you should have received a Natural Hazard Disclosure Statement. Sellers of real property are required by law to disclose before closing whether the property is in an area subject to natural hazards, including an earthquake fault zone. For a more detailed discussion, see the California Geological Survey and the Alquist-Priolo Act. If you’re not in a known fault area, the risk diminishes.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×