You are here:HomeIssuesNatural Disaster2015California Approves a 10 Percent Cut in Earthquake Rates

California Approves a 10 Percent Cut in Earthquake Rates

California Insurance Commissioner Dave Jones approved a statewide 10 percent rate reduction and new coverage options for California Earthquake Authority policies, effective Jan. 1, 2016...
May 6, 2015

California Insurance Commissioner Dave Jones approved a statewide 10 percent rate reduction and new coverage options for California Earthquake Authority policies, effective Jan. 1, 2016. The expanded deductible choices ranging from 5 percent to 25 percent will allow policyholders to customize coverage to better meet their insurance needs. The Earthquake Authority also offers a new hazard mitigation discount program that will give eligible homeowners a premium discount between 10 percent and 20 percent for verified retrofitting of their home. The actions come after scientists said the risk of California being hit by an earthquake with a magnitude of 8 or higher within the next 30 years is much greater than in earlier predictions. Earthquake coverage is not mandatory and the California Department of Insurance (DOI) says that only 11 percent of homeowners and tenants in the state currently have earthquake insurance, and commercial uptake is similarly low.

Filed under: