Quake insurance could get cheaper
An article in SF Gate today discusses how The California Earthquake Authority is looking to have earthquake insurance rates cut by 22%.
Among the attendees in this discussion is Governor Schwarzenegger.
“The reduction is being proposed largely for two reasons. First, scientists have determined that earthquake hazard probabilities, along with the risk of property damage, are lower than previously thought, and the authority is required by law to base its rates on the best available science. Second, the cost to the authority for reinsurance, or insurance for insurance, has sharply fallen.”
The argument, for the most part, among folks who do not carry this insurance (like myself) is that premiums and deductibles are too high to merit having the insurance at all. For most of the victims of the Northridge quake (SoCal), their damage did not exceed their deductible, leaving them with no benefits. Of course, since earthquakes are not covered by your traditional homeowner’s insurance, an earthquake could be devastating for many (most?) homeowners if they do not have adequate savings to make those repairs.
