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Tuesday, Sep 26, 2023

SFV Forum

With earthquake insurance prices on the rise and a reported drop in policy purchases in the San Fernando Valley, fingers are being pointed at the California Earthquake Authority, which offer less coverage at higher prices. The authority was formed last December after private insurers demanded a rollback in their liability for earthquake damages following the 1994 Northridge quake. The Business Journal Forum asks: Do you think earthquake insurance is worth purchasing? Jack McGrath Owner GM Communications No. I think the chances of another quake coming are small, and I’d rather save the premium dollars now and be a little more of a gambler. I think quake insurance is outrageously expensive. David W. Fleming Chairman Economic Alliance of San Fernando Valley Well, I think it depends on the location of the property. I, for example, don’t have quake insurance in L.A., because we’re up in the mountains, but I do have it on my home in the desert. It depends where you’re located. Mike Garfinkel Vice President Asbury Communications Absolutely not. If there is a huge earthquake, all of the insurance companies will go out of business and no one will be paid. If there’s a small earthquake FEMA will cover some of it. It’s definitely a waste of money. Steve Weber Spot Shop Editorial I purchased it right after the earthquake, but I don’t have it anymore. I can’t afford it now. It wasn’t terribly expensive, but it’s a tough decision. If you have an extra thousand dollars, it’s worthwhile. In today’s market, when you’re putting kids through school insurance seems like a luxury. Randi Loeb Calabasas Homemaker I do. We had earthquake insurance in Van Nuys at the time of the Northridge quake. It was worth it. It certainly took care of the repairs that we needed to have done. Gordon Gibson Owner Gibson Construction I think it’s a question of how much equity you have into your house and then it’s a function of what the deductible is. If an earthquake destroys your house, it’s going to destroy the city. With a massive earthquake like that, it wouldn’t matter anyway. I don’t think insurance carriers could handle it, they’d all go broke.

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