99.9% Chance of a Large L.A. Earthquake in Next 3 Years?

Oct 27, 2015

  1. Brian Anderson
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    Brian Anderson Executive Editor

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    According to a new study coauthored by a research scientist at NASA’s Jet Propulsion Laboratory, there is a 99.9% chance of a magnitude 5.0 or larger earthquake will hit the greater Los Angeles area by April 1, 2018.

    The U.S. Geological Survey raised doubts about the 99.9% figure, but in its own research has said there is an 85% chance of a mag-5 or greater quake in the next 3 years.

    Either way, time to get some earthquake insurance, eh? But only about 10% of homeowners in California have earthquake coverage, and it’s easy to see why it must be such a tough sell.

    According to a recent WSJ article, annual costs range from $230 in San Diego to about $1,800 in San Fran for typical policies providing $430,000 to $560,000 in coverage, typically with deductibles of 15%.

    The state-run quake insurer California Earthquake Authority has launched a huge advertising campaign and is cutting the cost of policies by an average of 10% in an attempt to boost sales, but it's an uphill battle so say the least. When it hits, most people will inevitably be looking for help from the government.

    USGS slams study's claim of 99.9% chance of large L.A.-area earthquake - LA Times
     
  2. dean8287
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    dean8287 Expert

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    $1,800 max premium does not really sound that bad for a 500K home in an earthquake prone area.
     
    dean8287, Oct 27, 2015
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  3. GreenSky
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    GreenSky Guru

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    15% deductible basically means if the home isn't a total loss there will not be a claim paid.

    Rick
     
    GreenSky, Oct 27, 2015
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