March 10, 2010
Despite the near certainty of a major temblor in the coming decades, relatively few Californians insure their homes against earthquakes. That's because the cost of the coverage is high and the value is low. Owners of modest homes in Southern California pay more than $1,000 a year for policies that won't provide a dime in benefits unless their houses have suffered more than $30,000 or $40,000 in damages. The high premiums reflect the cost of building financial reserves at the California Earthquake Authority, the agency that provides most of the state's policies.
September 11, 1998 |
Earthquake policies with a lower deductible and more extensive coverage may be available next year through the California Earthquake Authority, a state-run pool that provides most of California's earthquake insurance. Policyholders and consumer advocates have complained since the CEA's 1996 inception that the policies' 15% deductibles are too high and that its coverage is too skimpy.
CALIFORNIA | LOCAL
March 20, 1998
The science of earthquake prediction is imprecise at best, and that's a continuing problem when it comes to setting insurance premiums for California homeowners. The high rates charged by the California Earthquake Authority have been under challenge since the day the state agency was created in 1996; now there is new scientific information that is likely to stir up that dispute even more.
March 1, 2001 |
The temblor that hit the Seattle area Wednesday may cause more Californians to think about buying earthquake insurance, but the 6.8-magnitude shaker shouldn't otherwise affect policies or rates here, insurance officials said.
May 14, 1999 |
Democrats took control of the multibillion-dollar California Earthquake Authority on Thursday, using their muscle on the governing board to outvote the lone Republican on everything from a management audit to the number of times they will meet. The authority, which has been the focus of a tug of war between Democratic state Treasurer Phil Angelides and Republican Insurance Commissioner Chuck Quackenbush, met for the first time since December.
November 14, 1995 |
The state's insurance industry--which is making five times more in payouts for Northridge earthquake damage than it estimated immediately after the temblor--is now rethinking its support for a proposed state earthquake insurance agency.
March 22, 1997 |
Early sales of the new state homeowners earthquake policies are below expectations, based on results at two major insurance carriers, but state officials on Friday held out hope that sales may yet pick up as the busy summer season gets underway. In most cases, the new state policies are more expensive than the old private policies and offer less coverage.
August 26, 2005 |
In an effort to get more homeowners to buy earthquake insurance, the California Earthquake Authority on Thursday proposed changes in premiums for next year that would result in an average rate reduction of 22% statewide. The reduction, which could save some policyholders hundreds of dollars a year, would be the first since 1999, when premiums were cut by 4.5%.
July 2, 2012 |
The big news for California homeowners Monday was the Legislature voting to bar lenders from moving ahead with foreclosures while they were negotiating with borrowers over an alternative, such as a modified mortgage with lower monthly payments. The millions of borrowers who aren't defaulting, however, may be more pleased by a less-heralded development: the California Earthquake Authority's announcement of lower-cost options for quake insurance. The new offerings are one of several efforts by the authority to persuade more people to carry coverage.