Anyway, the decision to pay for it or not puzzles me, this being for a "Black Swan" type event. Would you take it or not?
- $300 per year to cover ~$500k dwelling value in San Diego
- deductible is 15% of dwelling value, so won't start unless damage >$75k
- $5000 contents coverage (if full deductible paid)
- $1500 additional living expanses (if full deductible paid)
- We have ~$700k in equity in the home
- $300 per year is quite affordable minor expense compared to our whole budget (one hundredth of our mortgage payment, and less than basic land line phone we pay $30/mo for just in case reliable 911 response is needed)
- Deductible is huge -- an earthquake that causes >$75k to dwelling would be a bigger one than has happened in modern history in San Diego
- If such a big Earthquake did happen it might kill us as well, so we couldn't collect
- Real estate agent said "Don't worry about earthquakes, your house will be taken down by a fire or mudslide long before it will by an earthquake"
A discussion on "risk of earthquake in San Diego" is on this site:
San Diego County ... does not have the history of earthquakes common to the rest of southern California. The Rose Canyon Fault, the only major active earthquake fault in the urban San Diego Area, has not produced a major earthquake since long before European settlers arrived in the area. Yet it is considered active by the State as it has had a history of earthquakes in the last 11,000 years. Our relatively short history in the region has created a false sense of immunity from earthquakes in the San Diego Area, but a major earthquake along the length of the Rose Canyon Fault could result in devastating consequences. [NOTE: we are within a mile of this fault]
Earthquake damage to buildings and infrastructure and secondary effects such as fires that often are started in earthquakes are a very real danger for all residents of the San Diego Area. If a major earthquake occurs during fire season then the fire damage could easily exceed the damage caused by shaking.