Earthquake and termite insurance

[renter1]

Can someone advice me do homeowners typically by earthquake insurance and termite bonds??

 

[collected]

No they don't.  I believe homeowners insurance does not cover earthquakes so people don't bother.  Termites would be a waste of money.  The loses typically aren't catastrophic.  The whole point of insurance is to be able to pay for something without taking a huge financial loss and going bankrupt. 

As for earthquake insurance it's typically a good idea to get it since it can result in a huge loss.  If you have 3-4 times the value of your house in cash or other assets then I wouldn't get it (such as 3mil cash for 1mil home).  Otherwise I'd get a deductible that's about 25%-33% of your assets.

 

[paperboyNC]

I have earthquake insurance.  Pest control companies offer plans that cover a free fumigation if their quarterly service doesn't prevent termites.

 

[LongIrvine]

3x value of house comment:  would probably look more at replacement costs (150-200/ft; land costs is usually larger component).  Most homes 2.5k ft have insured values of 500k, though may be "worth 1mm." 

Could make argument that if SoCal gets hit, construction costs will rocket and may cost 1mm due to lack of labor/materials.