I am in the process of buying a new home. Our geological report states that we ARE NOT in a fault zone. The bank and lender do not ask us to carry earthquake insurance though they DO expect us to carry FLOOD insurance!

This new home is in Long Beach situated between the Newport Inglewood fault and the Los Alamitos fault - we are 2 miles or so west of the nearest river.

In contemplating Earthquake Insurance for the new home, it would cost about $750 a year for a deductable of $27,000 and very little coverage (no garage, no block walls, $1,500 personal items, no driveways) - I've had a few say that I doubt you'd get $30,000 of damage. Others have said that the Federal gov't will declare a disaster so you can get low loans. Also another little bit of info - in very small print on the policy from the CEA it says "If we don't have enough money to cover this disaster, we'll surcharge you" - So... all in all the CEA insurance policy is pretty much worthless.

I find it fascinating that I'm required to buy Flood Insurance at over $400 a year - chances of a flood are 1% in any year according to the powers that be... I really don't think the San Gabriel River is going to overflow its concrete banks in my lifetime unless its Noah's flood all over again.

I'm not sure where the $200 figure comes from to retrofit a house - All I can say is I'm glad mine is bolted to the foundation (or so i've been told) and I hope I'm not near the fireplace when a quake hits!

Canie