Earthquake Insurance Anyone?

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Hello,

I am considering earthquake insurance for my two properties because they are only a few blocks away. If I had a quake I would lose both homes. If I had a more diverse portfolio I would not bother with it. Does anyone pay for earthquake insurance?

[Jeff B.]

My thought:  depends upon your equity in the property.  

First, CEI(California Earthquake Insurance) has a high deductible - - I recall 15% !!

Second, if you have little equity, then the 15% might be higher than your equity and there's little economic advantage to the CEI.

But if your equity is high, then it should really be heavily considered.

Recall also, that FEMA has always made low interest loans (2%) available in such cases.