Save Money on Earthquake Insurance

Some simple measures can reduce the extent of potential damage from earthquakes and reduce your earthquake insurance premium, too. Such repairs are called “retrofit­ting” and can include:

• Anchoring a dwelling more securely to its foundation

• Installing automatic gas shut-off valves

• Installing wall bracing

• Reinforcing chimneys

• Securing and bracing the water heater

States like California offer tax rebates and other incentives to pay for these modifications, which will in turn reduce your insurance bills.

 

Action Steps for Chapter Four

 

Avoid buildings in low-lying, flood-prone areas or buildings with a history of moisture-related problems, such as basement flooding or leaking roofs.

Ask your building inspector how he or she will test for mold. A thor­ough inspection should include an assessment of the building for both visible and hidden signs of water damage and mold growth. If a wall looks discolored, the inspector should inspect its interior surfaces by inserting a fiber-optic viewer through a small hole that has been drilled in the wall. The inspector should also collect air samples in all rooms (base­ment, crawl spaces, attic, and garage) and send them to a lab for testing.

If you suspect there is asbestos in a building you are considering, have a qualified inspector look over the property before you get too far along in negotiations. Removing asbestos in accordance with environ­mental guidelines is very expensive.

If you are acquiring a property where floods have occurred in the past, it is foolhardy not to get flood insurance, especially in light of the fact that it is relatively easy to buy (more than 100 insurance companies offer it) and relatively inexpensive (government subsidies keep policy prices low).

Anticipate flood-caused damage ahead of time, not after flood dam­age occurs. If water comes at the wrong time and in the wrong way, it can sweep away the value of your investment.

Some simple measures, such as bolting a frame house to its foundation, can reduce the extent of potential damage from earthquakes and reduce your earthquake insurance premium. Talk with your insurance agent to learn what to do.

 

PREVIOUS PAGE - Insuer Earthquake Policy

NEXT PAGE - Avoid Perils Risky Financing