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Fewer Have Earthquake Policies in California

The California Department of Insurance reports that California homeowners buying earthquake insurance declined by 52 percent from 1999 to 2003, and now fewer than 15...
November 30, 2004

The California Department of Insurance reports that California homeowners buying earthquake insurance declined by 52 percent from 1999 to 2003, and now fewer than 15 percent of homes have the coverage.  Officials blame higher premiums, more restrictions on coverage and the fact that the state has not been affected by a major quake for some time for the decrease.  About two earthquake policies in three in the state are sold by the state-run California Earthquake Authority, which imposes deductibles of 10 or 15 percent.  Loretta Worters, a spokeswoman for the Insurance Information Institute, notes that in Florida two-thirds of homeowners have only a 2 percent deductible for hurricane damage, although a few policyholders in high-risk areas have higher deductibles.

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