By Marni Leff Kottle, Special to The Chronicle (October 21, 2007)
(Click here to read the article at SFGate)

The main points of this article are:
- Only 12% of California homeowners have earthquake coverage.
- It is "extraordinarily expensive" ($100-$200 or so a month for a $700,000 property).
- Most policies have a 10-15% deductible.
- For most, alternative is bolting the home to the foundation and reinforcing particular parts.
- In Loma Prieta 43,000 homes were damaged, 75% of them less than the deductible.
- Property built on bedrock better than landfill.
- The California Earthquake Authority (CEA) is the state agency that funds coverage.
- Insure for cost of rebuilding, not appraised value.
- "It makes sense to link insurance with your equity status."

To buy or not buy earthquake insurance is a personal decision. We do not have earthquake insurance, but we live in a single family home on bedrock that is bolted to the foundation.

Two things to look at when considering this are in the disclosure package you sign(ed) when buying property.

Report of Residential Building Report (3R)
In the 3R section 7 lists "Construction, conversion or alteration permits issued, if any". If you see anything for years 1989-1991, see if it looks like it could relate to work done due to damage from the Loma Prieta earthquake and ask about it.

Natural Hazards Disclosure Report
The NHDR is typically prepared by either JCP or Property ID. Click here to read more about the NHDR from JCP.

In the NHDR there is a map cover page that shows the various hazard zones in which the property is located. Check this out and then see if the property you are buying was built to meet the cities guidelines regarding the hazard in which it is located. The City does have building requirements that builders and developers have to meet for hazards such as earthquakes and others. Click here for the Department of Building Inspections page on earthquake preparedness, hazard maps, etc.

MY THOUGHTS: You should always check to make sure that the property you are buying has been built or retrofitted to meet current building codes which take into account the hazards relevant to the San Francisco Bay Area. Newer buildings and homes typically meet these standards. Many others have been retrofitted to provide better protection.

As always, call or email us for more information, to discuss this in more detail or to have us help you read the map for your property.