But to answer your question, if you didn't take out earthquake insurance, then you will still be responsible for your mortgage, unless the goverment steps in.
Ask "everyone" if they took out earthquake insurance. I doubt it.
Best of Luck;
CEO & SR Credit Repair Specialist at
Everlasting Credit Repair
Ex-Mortgage Banker of more than 10 years.
Feel free to call me at 415-200-7202.
The answer is the same if some other reaso motivates you to walk away from the loans.
For as likely as a seismic event is in our area, the vast majority of homeowners do not carry earthquake coverage.
If you "lose" you home to an earthquake, you still have a mortgage outstanding. Nothing changes. Now, of course, if there is a declaration of a State or National Disaster, you would be covered by the programs provides by the Federal Government. I cannot speak directly to the coverages, limits or liabllity of any funds derived from the National Disaster Relief Programs. But, you might want to check out some the abysmal help that victims of Katrina have received in New Orleans....the cost of the earthquake insurance may be worth the piece of mind to you and your famility. Best of luck!
Broker Associate, Paragon Real Estate Group CA DRE 01844627
All data from sources deemed reliable but subject to errors and omissions, and not warranted.
That's what insurance is for.
Make sure your home is adequately insured (replacement value). And make sure that your insurance covers earthquakes.
It's likely that your lender already has required you to have insurance on the property. But it may not be adequate. (They've required the insurance to protect THEIR interest, not yours.) Check with your insurance agent. It should just be a quick call.
Hope that helps.
First, forget about staying in the city. There will be no water, no jobs, no roads, sewage disposal, etc. Everything, will be totally disrupted. There will be no way to rebuild homes for 15 years because
that's how long it will take to fix the infrastructure, when this can't even be contemplated due to
continued ground settling, everywhere. No water means there is a great potential for fire-storms starting
under the right wind conditions. Your house becomes worthless. Everyone will walk away. You'll lose whatever you have unvested in it. The land it sits on is worth a dime-on-the-dollar to the Army Corp
of Engineers. The bank keeps whatever insurance it can get. The total loss, with rebuilding expenses
nears a trillion dollars. So if you have a paid up home worth a milllion bucks that you need to
abandoned it, you'll probably lose 90% of that money. Otherwise, you'll lose all that you have
in it and the bank may end up keeping the insurance money (if they can collect), which will cover
a small fraction of their own loss. The impact list goes on and on... and the government isn't going
to cover you for a tiny fraction.
The debt (your mortgage) would still be your responsibility if you lost your home in an earthquake. You should definitely look into earthquake insurance and make sure your insurance covers you adequately. Depending on your level of concern, you may want to be insured for more than the minimum state requirements. Talk to your current insurance provider for more information.
And even if you have it are you sure they will cover you? Google "katrina insurance claim wrongful denial"
If your lucky they will pay. If your not they can not pay, they can delay, they can take you on a ride. Are you prepared to go through that process?
As you know San Francisco has a seismic classification of Zone 4 risk factor which is the highest rating you can get. This doesn't bode well for insurance rates. Here's a link you may want to access for additional information on EQ coverage.
Many insurance companies no longer offer EQ insurance but will cover everything else including fire. So if your home burnt down as a result of an EQ you'd still be covered. If it didn't burn down but was destroyed and you had no EQ coverage you'd be out to lunch and still on the hook with your mortgage.
If you can find an insurance company that will issue a rider for EQ coverage it will be expensive and carry a very large deductable. I carried EQ insurance for a few years but it still had 100k deductable that I would that I would have to absorb so after about five years of pourig that extra money down the drain I finally cancelled the EQ coverage.