If an earthquake hits in one of the highly populated areas of California again, watch for those sky-rocketing home prices to plummet. Earthquakes -- the great equalizer. I remember after the San Fernando / Sylmar earthquake of 2-9-71 you could buy a home in the Knollwood section (pricey)of Granada Hills dirt cheap. Some people were practically giving away their homes rather than spend the money to fix them up; it was too expensive. They were moving out of California, out of earthquake country.

That was in pre-FEMA days. Back then it was the SBA that gave out the loans or grants. I don't remember what the cap was on borrowing, but I do remember, for sure, that the first $3,000 was forgiven. Now FEMA is the government agency that helps out and they give out a max of $26,000 grants, and max of $150,000 loans after a disaster to a single household, according to the article. That's an 866% increase in grant money -- quite generous of our government.

I've always had earthquake insurance ever since those days, even when we lived in Oregon for 8 years and now in Las Vegas -- wouldn't be without it -- can't afford to be without it. The cap on FEMA loans is only $150,000. And who can afford another loan on top of a mortgage? Sure the earthquake insurance is expensive and the deductible is high, but consider the alternative.

I have a question after reading this article. If a person has earthquake insurance and say the deductible is $50,000, and say that person has extensive damage to his house (beyond the deductible amount), can that person apply to FEMA for the $26,000 grant to offset that out-of pocket money ($50K) he would have to spend to fix up his house?

Barbara