How Expensive Earthqauke Insurance Can Be?

[redsquash]

How expensive are earthquake insurance for rental property. I know it depends on the area and all that. But here is the situation:

1) Rental property insurance: Fire Dwelling premium $950. If the client add earthquake insurance to that, that is additional $900

2) For primary house: HO insurance $1400. Earthquake endorsement $650.

Do these numbers for earthquake endorsement seem reasonable, or should I look for other companies. I dont do much P&C, but only a few where life clients insist - so I'm not sure about the rates.

 

[jhuang]

Are you talking earthquake coverage in North Carolina?

 

[redsquash]

Yes.
The client has primary home and rental property, and looking to add earthquake endorsement to his current HO policy.

Are you talking earthquake coverage in North Carolina?

 

[jhuang]

Didn't realize there's earthquakes out there...Sorry I can't help you there for my market is California.

 

[redsquash]

You're right, there hasn't (ever) been any earthquake in NC - atleast I dont remember reading anywhere about it.

But the client owns a house worth 650k, and wants to protect it, just in case. He says, it never happened doesn't mean it cant be.

 

[Hefe]

A $300 variance between the two doesn't seem wrong...at least for the CA market. So much depends on the area and where the closest fault line is.