ucbalumnus wrote: »
The Northridge quake in 1994 was the event that caused insurance companies to flee the earthquake insurance market, since earthquakes are very rare events that have the potential of causing large losses at one time (as the Northridge quake did), making it difficult to assess insurance risks on them
I think most California homeowners don’t buy earthquake insurance policies because they are making an intelligent, rational decision,” said Joe Ridout, California legislative advocate for Consumer Action.
“Usually, damage from an earthquake will be less than a 15% deductible, which would mean that you’re self-insuring anyway,” he said.
“And in the event of a massive earthquake near a population center, it is quite conceivable that the CEA would run out of money and fail to make you whole even if you were a policyholder.”