Quote:
Originally Posted by MRM
I asked a friend who works in the industry and knows a lot about earthquake insurance. Their company doesn't write in Oregon, only California and Washington, so they're not an option, but here is the advice. Earthquake insurance is currently very competitive so by shopping around you should get a good price. Call your State Farm agent and ask for a referral to an insurance broker who can handle earthquake insurance. When you talk to the agent, ask for the best rate you can get from a company that is rated A.M. Best A or better. Any A rated company will have more than enough reserves to handle the big one. With the high deductibles and rates on earthquake insurance, there isn't really a problem that a big earthquake could put the company out of business if it is A rated.
So there you go. Either shop for a good broker and buy the cheapest A rated policy you can get, or self-insure and put the money you saved in premiums into the market yourself. If the big one does hit that's your loss reserve.
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You mean like AIG.....
The rating don't mean shyte if the company is NOT RE-INSURING their policies...to lay off being crushed by claims from a big one. That is why AIG almost bit the big BK in 2008, they got greedy and did not re-insure their home insurance mortgage policies. When those mortgages started to default starting in 2007 AIG was on the hook to make em all good. Hoooo Haaaa.
That caused NY Govenator Patterson to beg FED Chair Bernake to save AIG...with a bail out.