WatchHello,
I am interested in buying a TIC in the City that unfortunately is in the Mission and just barely in an area of soil prone to liquifaction ber the SF soil map.
The building is a 1960s building and 2 stories ,wood framed.
Can I get earthquake insurance for just my unit? Is it worth it? I dont have any valuable possesions, Id mainly be worried about structural damage.
Will the City/ State/ Fed Govt help home owners like they did in Katrina?
Id appreciate any feedback.
Thanks.
Victor.
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There are too many things that are wrong with this deal for me. However, your risk tolerance might be much higher than me. So here it goes.
1). I hate TIC (tenant in common).
2). Being in a liquefaction zone is not a deal breaker for me. However, you have to do further research on this. If your property is situated on liquefiable sand, then no deal. If it is situated on top of a clay layer overlying the liquefiable sand, I don't mind. There was an extensive study in the Mission District after the Loma Prieta Earthquake in 1989. Google it.
3). Since the property was constructed in 1960's, there is a high chance that it is supported on a footing foundation, which may not perform very well during an earthquake.
4). Earthquake insurance is very expensive & the deductible is very high. Contact an insurance agent about the 2nd part of your question.
5). If history is any indications, we are 4 years overdue for an earthquake from the Hayward Fault. How do you like a house with extensive foundation and structure damage shortly after you just bought it? This is the reason why paying off a property doesn't make sense to me. Basically, you've just transferred all the risk to yourself instead of leaving 80%-96.5% of the risk to the lender.
Just my 2 cents of course. :0)
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Hey E-man, thanks for taking the time to reply. I appreciate it. I really love this unit, but this does manke me anxious.
Can you tell me where the"extensive study in the mission district" is on the intternet? Either a link or some google words would help. I couldnt find anything.
You also said footing foundation? Is that opposed to drilled piers?
Thanks a ton.
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Thanks Ptiemann.
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It looks like I tossed out that book when I had a career change 3 years ago. It was several hundred pages, and it showed the extent of damages on each street in the Mission District. Everytime we had a project there, we opened up this book to see where it's located so we know what the expect to do our investigation for the design of the new development. It will take me some effort to locate that case study for you though.
I doubt they did piers and grade beams back in the 1960's, but I could be wrong. How do you install a pier foundation when you have shallow ground water and the lose sands just keep caving in? Now we have the knowledge & technology to do it though.
Well, you place your bet accordingly. :)
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sf_peasant says
No, but the Mexican army might! I think you can count on them more than you can FEMA.
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sf_peasant says
Did it or any of its neighbors suffer damage in the Loma Prieta quake? Was it retrofitted?
A trip to city hall may be in order. Check online for building permits. You may get lucky and find the original plans filed away somewhere in the records as well.
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City hall or the Dept of Building Inspections on Mission Street?
I would totally look into it.
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ptiemann has it right. Don't buy it. You're better off to take whatever you'd have paid in premiums to Vegas and hope for a streak at the craps table.
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What about partial coverage? Homes are built pretty well nowadays but I worry most about medium-sized damages ($20K) and loss of use (hotel for two months, another $10K). Premium should be manageable (less than $1K a year).
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Hi Peter P,
Yes the insurance is 950$ a year and covers 75,000$ of damage with a 11,000 deductible. That doesnt seem so bad.
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Hi sf_peasant. It does not look too bad. But Randy has a point too...
BTW, who is the underwriter?
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Raise the unit & install pontoons & it will float if the ground liquifies.
sf_peasant, Good luck with whatever decision you make.
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HEY YOU says
Or break off and go floating down the street much like the Crimson Permanent Assurance building in the opening scenes of Monty Pythons "The Meaning of Life"