Time for quake insurance? Washington No. 2 in premiums

An East Coast earthquake?

Suffering damage from a seismic shift isn’t a risk many homeowner’s outside of California worry about, but Washington residents are a distance – but solid second – for earthquakes premiums written in 2009.

Most standard homeowners, renters and business insurance policies do not cover damage from earthquakes — specifically, the potential losses from the shaking and cracking that can destroy a building and other property.

Coverage for earthquake damages can be purchased as a rider to existing property insurance. Check to see if your insurer offers an earthquake damage rider. If not, you can shop around for a supplemental policy.

Deductibles range from 2 percent to 20 percent of the replacement value of the structure. If a home costs $100,000 to rebuild, the homeowner would have to pay the first $2,000 for a 2 percent deductible.

States like Washington, Nevada, and Utah, with higher than average earthquake risks, often have a 10 percent deductible. Property owners can often lower the annual premium by agreeing to a higher deductible.

The cost of earthquake insurance varies depending on your location, the type of building and its age. Older buildings cost more to insure as do those made of brick. Wood frame structures withstand quakes better, therefore cost less to insure.

A wood-frame home in Washington might cost between $1 and $3 per $1,000 worth of coverage. Insuring a brick home could cost from $3 to $15 per $1,000 in the Pacific Northwest and between 60 and 90 cents per $1,000 for coverage in New York.

According to SNL Financial LC and the Insurance Information Institute, here’s the top 10 list of states where individuals and businesses have purchased additional earthquake insurance protection. (Premiums in thousands, 2009).

1. California $1,584,897
2. Washington $134,970
3. Missouri $88,542
4. Tennessee$ 59,612
5. Oregon$ 53,777
6. Illinois $49,999
7. Kentucky $35,141
8. Florida $31,645
9. Indiana $31,161
10. South Carolina $30,515

The Associated Press and Money News contributed to this report.