»Article posted on: January 15, 2010 by: Joan Michaels
Why won’t Californians buy earthquake insurance?
Californians, I’m worried about you, especially as I watch the news of the quake destruction in Haiti. A large earthquake centered in California is inevitable and almost certain within the next 30 years.
But what isn’t necessarily inevitable is the personal financial destruction that would follow the total loss of one’s house and belongings. Yet only 12 percent of California residential policyholders buy earthquake insurance policies. That number doesn’t include all the folks who chose not to buy any form of home insurance or renters insurance, so the true number of uninsured is unknown.
This week we asked, why won’t Californians buy earthquake insurance? Cost is one potential factor. But the way our brains are hard-wired could also affect our insurance purchases. Can we really wrap our heads around a risk such as earthquakes?
I’d be interested to hear from Californians on why they choose not to buy earthquake policies.
filed under HOME INSURANCE | tags: Add new tag, EARTHQUAKE INSURANCE, HOME INSURANCE
Frances said:
Jan 18, 10 at 1:26 pmThey probably think that it won’t happen in their lifetime or that they’ll be out of California before it happens/
Adam said:
Jan 18, 10 at 1:30 pmThere’s so many types of natural disasters that could happen around the world and there’s insurance for each of them, I’m sure. It’s hard to choose which ones you should buy, especially in an economy like this. Being able to give my two children health insurance seems to be a higher priority than earthquake insurance. Sometimes you have to focus on the now to prepare for the future.
Jeff said:
Jan 18, 10 at 3:44 pmIt’s ridiculously expensive. I just bought my first home and was appalled by how much it was. If an earthquake totals my house, I wait a week and light it on fire (on accident).
Jeff said:
Jan 18, 10 at 3:45 pmNot to mention the insane deductibles
Brad said:
Jan 21, 10 at 9:56 pmI feel you, Jeff.