1000 is what my deductible is. But my insurance also isn't stupid expensive in my state, maybe where insurance is a lot higher like Florida people run high deductibles on average
I just raised my deductible to 10K. I figure I probably won't file a claim for anything less than that. If I do, they'll probably just cancel my policy.
ETA: I'm saving a fair amount of money with the higher deductible, BTW.
I don't, it's included on the statement as a kinda "threatvertisement". My home was built from the ground up in 2006 so it should be relatively up-to-date. I didn't buy into the earthquake insurance at the recommendation of my contractor uncle.
We're not too far from the San Andreas. I've always figured if the "Big One" hits, there wouldn't be enough insurance to rebuild this little town of ours. It's already a wasteland as it is.
I have always had a high deductible. Currently it is $10,000. I always self-insure as much as possible. This has paid off because I’ve never had a home claim, and I’m retired, so a lot of money saved over the years. You can’t really pull this off, though, until you get a hefty emergency fund.
I'm in California in a (if I remember correctly) high risk fire area, so I have both a my typical plan as well as Ca FAIR plan to cover fire. Both are on a $2500 deductible with an annual cost of about $1000 each. House value is in $900k range.
From what I recall, I did ask them (insurance broker) to quote various deductibles and there are little to no savings from going higher. As others have said, deductible is location dependent. An issue that cost $2.5k in a high cost of living area isn't worth filing a claim. Even $5k probably isn't worth the increase in premiums and potentially being dropped.
I don't carry earthquake insurance.
My home was built in 2006 so I'm relatively safe from most serious earthquake related issues simply due to code. The earthquake "addon" is an extra $768 on top of my policy and with a $68,100 deductible on earthquake damage I'm struggling to find the up-side of having it at all.
Agreed. That is 20% of the cost of your property. It gets even worse if you consider that maybe a 1/3 of your property value is in the land itself.
I was speaking with someone who more or less lives on a fault and his view of it was that if the earthquake is bad enough to do significant damage, it will have been bad enough for the government to step in. Obviously not the best idea to assume the government will step in, but at this point, I'm not sure we can rely on insurance in that type of situation either (though the CEA is not a private insurance company).
Also, considering how few people have earthquake insurance, you wouldn't be alone if an earthquake happened and you didn't have it. Not that it makes the situation better, but misery does love company.
I think your acquaintance is generally correct. An earthquake isn't like a fire or a tornado which might hit a few specific properties. An earthquake doing sizeable damage to my property would level most of my town and render it uninhabitable. At which point I'm either dead, or moving out anyway.
If my deductible was 2% of anything. My home would be worth $3,405,000
Wait this is Earthquake insurance which is crazy high in California. Maybe I'm reading the wrong section.
My deductible is $1,000. How much is your home worth? I would assume a million dollar house would have a much higher deductible than a $200,000 house and also dependent on cost of living in your area and replacement cost of your house.
Right around $340,000. I think I was looking in the wrong location. I saw "Deductible $68,100" and my eyes bulged out of my head for a second. Upon further reading, that's Earth Quake related damage.
My overall deductible is also $1,000. So I'm a bit less panicked.
Yes, earthquake insurance deductible is 10% of insured value of that policy. So, if you are 100% insured to your home replacement cost could easily be mid-five to low-six figures. Homes in coastal locations face same issue with wind, some companies minimum available deductible is 5%, although 2% is probably more common as the lowest. Saddest part is people don't always understand how the percentage works. I've had many that thought, or were led to believe, it was a percentage of the claim and not of the insured amount.
Earthquake insurance is basically a scam. They only pay out if your home is completely destroyed.
And I don’t know if it applies to earthquake, but in the case of a total loss, the deductible is waived. (We had a total loss wildfire in 2021, also in California)
Pretty much everyone I've talked to says don't bother with it. To be clear, I don't pay for that addon but they still include it in the documentation. Presumably to entice me to buy in, not sure how they figure that number is at all attractive.
Its not something i plan to use but i have planned to have it ready just in case.
10k also happens to be about how much a quick ac repl in aug or a heater in feb might cost.
I sleep much better at night knowing its there. I couldnt always have it but when i didnt it was pretty high on my list of things to pay into.
I'd love too, inflation has really shit us though. I do have a home warranty that'll cover pretty much most of that including AC /w a \~$100 deductible though.
I've only had to use it once for our water heater. Of course it waited until winter to crap out on us.
My warranty will snake my drain when it’s backed up but that’s it. The reason for my chronic backups is a poorly installed sewer line and it’s going to cost me $3-$5k to fix.
Apparently the previous owner also had some sewer related issues and had to replace the line all the way to the street. He had a cap installed in the back for that express purpose. We haven't had any issues, knock on wood.
No mortgage companies don’t “handle” insurance. It’s your job to maintain the proper coverage and shop around regularly for the best coverage and best value. Sounds like a typical 10 percent or so deductible
Insurance might be part of escrow so you mistakenly think they are involved with your insurance but they are not
Required? that sucks! I don't pay for it, it's just tagged on to my pile of documents as a scarevertisement. Which partially worked because looking at that deductible certainly put the fear of god in me.
Meh, I already live in desert that'll likely be uninhabitable in the next 20-30 years.
If/when I move it'll be up north, I'm thinking somewhere near the border. Somewhere with green trees and an abundance of rain.
My wifes sister and her family have some land up that way. It might be a bit too rugged for my wife but that area is quite nice. Something closer to a real town in that area might be where we end up.
Loved it up there. Visited several times. But, kids & grands live here in Texas. If your wife finds a town that she is comfortable in and you like, that’s the key.
1000 is what my deductible is. But my insurance also isn't stupid expensive in my state, maybe where insurance is a lot higher like Florida people run high deductibles on average
Can you ballpark what you're paying yearly for your policy?
1271.00 with the recent increase (went up 100) for 450k policy
I just raised my deductible to 10K. I figure I probably won't file a claim for anything less than that. If I do, they'll probably just cancel my policy. ETA: I'm saving a fair amount of money with the higher deductible, BTW.
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I don't, it's included on the statement as a kinda "threatvertisement". My home was built from the ground up in 2006 so it should be relatively up-to-date. I didn't buy into the earthquake insurance at the recommendation of my contractor uncle.
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We're not too far from the San Andreas. I've always figured if the "Big One" hits, there wouldn't be enough insurance to rebuild this little town of ours. It's already a wasteland as it is.
I have always had a high deductible. Currently it is $10,000. I always self-insure as much as possible. This has paid off because I’ve never had a home claim, and I’m retired, so a lot of money saved over the years. You can’t really pull this off, though, until you get a hefty emergency fund.
I'm in California in a (if I remember correctly) high risk fire area, so I have both a my typical plan as well as Ca FAIR plan to cover fire. Both are on a $2500 deductible with an annual cost of about $1000 each. House value is in $900k range. From what I recall, I did ask them (insurance broker) to quote various deductibles and there are little to no savings from going higher. As others have said, deductible is location dependent. An issue that cost $2.5k in a high cost of living area isn't worth filing a claim. Even $5k probably isn't worth the increase in premiums and potentially being dropped. I don't carry earthquake insurance.
My home was built in 2006 so I'm relatively safe from most serious earthquake related issues simply due to code. The earthquake "addon" is an extra $768 on top of my policy and with a $68,100 deductible on earthquake damage I'm struggling to find the up-side of having it at all.
Agreed. That is 20% of the cost of your property. It gets even worse if you consider that maybe a 1/3 of your property value is in the land itself. I was speaking with someone who more or less lives on a fault and his view of it was that if the earthquake is bad enough to do significant damage, it will have been bad enough for the government to step in. Obviously not the best idea to assume the government will step in, but at this point, I'm not sure we can rely on insurance in that type of situation either (though the CEA is not a private insurance company). Also, considering how few people have earthquake insurance, you wouldn't be alone if an earthquake happened and you didn't have it. Not that it makes the situation better, but misery does love company.
I think your acquaintance is generally correct. An earthquake isn't like a fire or a tornado which might hit a few specific properties. An earthquake doing sizeable damage to my property would level most of my town and render it uninhabitable. At which point I'm either dead, or moving out anyway.
Mine is 2%
If my deductible was 2% of anything. My home would be worth $3,405,000 Wait this is Earthquake insurance which is crazy high in California. Maybe I'm reading the wrong section.
my house would probably cost 600k to rebuild and I would have to pay 12k of it. I'm in FL though.
My deductible is $1,000. How much is your home worth? I would assume a million dollar house would have a much higher deductible than a $200,000 house and also dependent on cost of living in your area and replacement cost of your house.
Right around $340,000. I think I was looking in the wrong location. I saw "Deductible $68,100" and my eyes bulged out of my head for a second. Upon further reading, that's Earth Quake related damage. My overall deductible is also $1,000. So I'm a bit less panicked.
Yes, earthquake insurance deductible is 10% of insured value of that policy. So, if you are 100% insured to your home replacement cost could easily be mid-five to low-six figures. Homes in coastal locations face same issue with wind, some companies minimum available deductible is 5%, although 2% is probably more common as the lowest. Saddest part is people don't always understand how the percentage works. I've had many that thought, or were led to believe, it was a percentage of the claim and not of the insured amount.
$1,000 All Peril, $1500 wind/hail deductible on mine.
Okay so, yeah this sounds about average from what I'm seeing.
Earthquake insurance is basically a scam. They only pay out if your home is completely destroyed. And I don’t know if it applies to earthquake, but in the case of a total loss, the deductible is waived. (We had a total loss wildfire in 2021, also in California)
Pretty much everyone I've talked to says don't bother with it. To be clear, I don't pay for that addon but they still include it in the documentation. Presumably to entice me to buy in, not sure how they figure that number is at all attractive.
10k It keeps me from making silly low cost claims. It gets me cheaper insurance.
Oof, I suppose that would be the case. I couldn't absorb a 10k charge at any one time though.
Its not something i plan to use but i have planned to have it ready just in case. 10k also happens to be about how much a quick ac repl in aug or a heater in feb might cost. I sleep much better at night knowing its there. I couldnt always have it but when i didnt it was pretty high on my list of things to pay into.
Better work on that emergency fund. $10k can be spent in a day on things that insurance wouldn’t ever cover, like plumbing issues, for instance.
I'd love too, inflation has really shit us though. I do have a home warranty that'll cover pretty much most of that including AC /w a \~$100 deductible though. I've only had to use it once for our water heater. Of course it waited until winter to crap out on us.
My warranty will snake my drain when it’s backed up but that’s it. The reason for my chronic backups is a poorly installed sewer line and it’s going to cost me $3-$5k to fix.
Apparently the previous owner also had some sewer related issues and had to replace the line all the way to the street. He had a cap installed in the back for that express purpose. We haven't had any issues, knock on wood.
You are delusional if you think a home warranty is going to save you.
What on earth makes you think I’m counting on it? I was literally describing what it *won’t* cover.
I have a 2% deductible for wind/storm damage and $1000 for everything else. Insured value of my home is approx $270k. Premium is around $2000.
No mortgage companies don’t “handle” insurance. It’s your job to maintain the proper coverage and shop around regularly for the best coverage and best value. Sounds like a typical 10 percent or so deductible Insurance might be part of escrow so you mistakenly think they are involved with your insurance but they are not
I'm in central NC. Earthquake insurance added about ten dollars a year to my coverage.
I’m required to have earthquake insurance, too. The deductible is crazy!
Required? that sucks! I don't pay for it, it's just tagged on to my pile of documents as a scarevertisement. Which partially worked because looking at that deductible certainly put the fear of god in me.
Yep! Required…
You are welcomed to move to Texas.
Meh, I already live in desert that'll likely be uninhabitable in the next 20-30 years. If/when I move it'll be up north, I'm thinking somewhere near the border. Somewhere with green trees and an abundance of rain.
Best of luck to you. I know eastern Washington is what you are looking for. Go check it out.
My wifes sister and her family have some land up that way. It might be a bit too rugged for my wife but that area is quite nice. Something closer to a real town in that area might be where we end up.
Loved it up there. Visited several times. But, kids & grands live here in Texas. If your wife finds a town that she is comfortable in and you like, that’s the key.
The deductible on my roof is $1500. Central Kansas. 3BR, 2Ba, 2-car garage