Hi Tony,

It's me, the insurance agent who can answer your question correctly.

Earthquake Insurance is always worth it if you live in a seismic risk zone. The reason is simple. Your home is the largest single investment you will make in your life, but if you don't insure it and a moderate earthquake nearby, or a large earthquake at some distance provides heavy damage you have to consider what your alternatives might be.

If you have the coverage, even with a large deductible, that deductible can be borrowed or possibly granted by FEMA. Without the coverage, the largest amount given by FEMA for quake damage has been $100,000. But you have to remember, that is a loan. So could one qualify for a loan that large with a mortage payment? I don't think most people could. If your house is a total loss, you can get the loan and have to start all over again, but only by claiming bankruptcy for your current home. Not a good alternative.

As many people learned after Loma Prieta, life after an earthquake and its financial impact can be far more stressful than the earthquake experience itself.

I have a full page on my web site devoted to this topic and covers all situations of residence.

Petra

• The Seismic Safety Zone