Quackenbush OKs Average Reduction of 11% in Quake Insurance Rates
An average 11% decrease in the state’s earthquake insurance rates--approved in July by the California Earthquake Authority--won the endorsement of Insurance Commissioner Chuck Quackenbush on Thursday and will go into effect in November.
Quackenbush said those who have already paid for quake insurance this year will get an average rebate of $62 on their premium, either as a refund or a credit on next year’s bill.
The decrease came after the state geologist, James F. Davis, found fault with a risk model developed for the state by private consultants.
A public hearing process on the rates is not yet concluded and could result in further price revisions. Quackenbush said that the present decrease may only be an interim measure.
About 70% of all homeowners are offered coverage through the state system. The other 30% are customers of companies that have not joined the Earthquake Authority.
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