US News Metro Long Island Politics

Sports NFL MLB Olympics NBA NHL College Football College Basketball WNBA

Entertainment TV Movies Music Celebrities Awards Theater

Lifestyle Weird But True Sex & Relationships Viral Trends Human Interest Parenting Fashion & Beauty Food & Drink Travel

Health Wellness Fitness Health Care Medicine Men’s Health Women’s Health Mental Health Nutrition

Science Space Environment Wildlife Archaeology

Today’s Paper Covers Columnists Horoscopes Crosswords & Games Sports Odds Podcasts Careers

Email Newsletters Official Store Home Delivery Tips

Switch between CA and NY editions here.

California can make earthquake insurance cheaper by reducing risk

See more of our coverage in your search results.

Californians know another major earthquake is coming. The only question is when.

Scientists believe that there is more than a 99 percent chance of one or more major earthquakes hitting California in the next 30 years. Yet only about 13 percent of California homeowners carry earthquake insurance. Approximately two thirds of California’s residential earthquake insurance market is served by the California Earthquake Authority, with the remaining one third served by private insurers.

That gap between the risk we face and the protection we have should concern every Californian.

The challenge is not that Californians do not understand earthquakes can happen. It is that many families struggle to justify the cost of coverage while balancing the many expenses of everyday life. Decades can pass without a major earthquake, creating a false sense of security. Combined with high premiums and significant deductibles, that leaves too many homeowners without coverage.

Earthquake insurance is expensive because earthquake risk is expensive. California law requires rates to be actuarially sound and based on the best available science. The challenge is not to ignore that reality, but to build a system that provides meaningful protection while remaining financially strong.

California learned an important lesson after the 1994 Northridge earthquake. The scale of the disaster caused many insurers to pull back from the homeowners market, prompting the creation of the California........

© New York Post