Sound Off: Do you recommend earthquake insurance?
A: A client who asks about whether to purchase earthquake insurance is already ahead of many property owners who assume their homeowner’s insurance covers them in an earthquake. This is not true.
After researching the cost of insurance, many people, often with advice from their attorney or financial advisor, choose not to purchase earthquake insurance because of the high cost of the deductible — 10 to 15 percent of the cost to rebuild the home.
In Silicon Valley, with its expensive building costs, the deductible could reach hundreds of thousands of dollars for a typical home.