Californians Could Soon Be Paying Triple the Premiums for Home Earthquake Coverage – Here’s Why

0
172

So far this month, specifically on July 4 and July 5, 2019, a number of powerful earthquakes have plagued the Golden State – formally known as California. The earthquakes, which took place close to the small town of Ridgecrest, home to some 28,000 people, that is located in Southern California.

The earthquakes had tons of aftershocks, one foreshock that was rated on the Richter scale at a magnitude of 6.4. The three main shocks of the earthquakes registered on the Richter scale with magnitudes of 6.4, 5.4, and 7.1 with respect to the order that they occurred.

Although nothing more than a few building fires and a minor power outage resulted in terms of damages from the earthquakes last week, the insurance rates of countless Californians’ insurance policies have increased substantially as a result of the recent quakes. Fortunately, nobody died or got seriously injured as a direct result of the series of earthquakes across the two-day period last week.

Right now, as of July 2019, California is home to roughly 40 million people. In total, roughly 2.5 percent of them pay for earthquake insurance to protect at least their homes, if not their vehicles and other personal belongings – in other words, roughly one million Californians pay for policies that fall under the umbrella of earthquake protection, a field that is growing rapidly across all of California.

Unfortunately, for some one-fourth of the roughly one million California residents who have bought earthquake insurance on their homes, insurance policy providers will be raising these policies’ rates substantially, some of them planning to more than triple their rates.

People in Southern California are much more likely to be affected by a major earthquake than those living in Northern California. This comes from a decades-long, ongoing study formally known as the Uniform California Earthquake Rupture Forecast, or UCERF3.

Take, for illustration, people living in Sacramento pay, at the lowest, roughly $300 per year for earthquake coverage that protects their homes. Consider this relatively low annual premium as compared to people living in Los Angles, who are forced to fork over as much as $2,000 in terms of these policies’ annual premiums – and that’s only how much they’re paying right now, not after the planned insurance rate hikes that are coming in the next few weeks and months.

Monterey, Kings, Kern, Humboldt, Del Norte, and Fresno Counties are the counties that are most likely to see the greatest premium hikes related to this type of insurance across all of California.

LEAVE A REPLY

Please enter your comment!
Please enter your name here