When Allstate Insurance Co. announced in June that it would stop writing new earthquake insurance coverage, thousands of homeowners such as Sally Deneen had to scramble to find new coverage.

As she researched the alternatives, Deneen discovered that she would get even less coverage while paying higher premiums to insure her 1900 wood home in Fremont.

Q: How do I find affordable, reliable earthquake insurance? And what exactly is covered?

A: Do your homework and shop around for the best rates and features. Consider getting a higher deductible if you want to lower your premium.

When Allstate pulled out of the earthquake-insurance business, leaving about 40,000 Washington homeowners in the lurch, many feared others would follow suit. That hasn't happened so far, though two large insurers -- USAA and Farmers -- did stop writing earthquake insurance in the past six years.

But the NW Insurance Council's member companies aren't planning changes at this time, council President Karl Newman said.

Earthquake insurance isn't included in a standard homeowner policy, so you have to buy an endorsement to your current policy or a separate policy. The coverage value typically will be the same as what's in your homeowner's policy: the cost to rebuild your home.

In weighing her coverage choices, Deneen wondered whether her standard homeowners policy would cover her house if it burned down because an earthquake ruptured gas lines.

Yes, it would, but the standard policy would cover only damage that was specifically related to the fire, Newman said. If an earthquake destroyed 80 percent of your home, but only 20 percent of that destruction was the result of fire, the standard policy would cover only that specific fire damage, he said.

Earthquake insurance generally won't cover you for damages or losses from floods and tidal waves, even if they're caused by an earthquake. But you are generally covered from losses related to landslides, settlement, mudflow or rising, sinking and contracting of the earth if the damage resulted from an earthquake, according to the Office of Insurance Commissioner.

High deductibles and high premiums are two reasons why only one in eight homeowners in the state of Washington has earthquake insurance.

Deneen found premium estimates that ranged from $252 to $897 a year.

Premiums vary widely, depending on where you live, the age and condition of your home, whether your house is bolted to the foundation and other factors. Wood-frame structures generally are less expensive to insure than brick buildings because they tend to withstand quake stresses better. And an insurer can refuse to offer you earthquake coverage if it believes your home is too old, said Stephanie Marquis, an OIC spokeswoman.

Pemco Insurance considers the condition of a house to determine if it's eligible for coverage, and generally homes built before 1980 draw closer scrutiny because of building-code changes since then, said Jon Osterberg, a company spokesman.

Homeowners also balk at the high deductibles, offered between 10 percent to 25 percent. If you have a 15 percent deductible on a home insured for $300,000, you would be responsible for the first $45,000 in damages before the insurance kicked in.

You have to determine your own tolerance for risk. With no insurance at all, you would have to bear the cost of replacing the house yourself.

BE PREPARED

Check on the financial strength of an insurance company by using ratings and analysis from A.M. Best, ambest.com.

Check the Office of Insurance Commissioner's online tool for complaints, goto.seattlepi.com/r595. There's not a specific category for earthquake coverage, but you can get a general idea of consumer satisfaction by looking at how insurers handle other policies.

Consider ways to retrofit your home to minimize potential earthquake damage. Project Impact Home Retrofit Program, run by Seattle's Office of Emergency Management, offers a free two-hour consumer class. For information on dates, locations and registration, call 877-226-5848.

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