Re: [californiadisasters] California Earthquake Authority Proposes to Lower Rates

Glad to read they may reduce the rates. My policy is about the same as
the regular house insurance. Only ~800,000 have EQ insurance?

The problem with the hazard-mitigation device discount at least here in
San Bernardino County is that the county wants $200 (the last time I
checked years ago) to inspect and issue a certificate the insurance
companies/Authority will accept. At my present rate it would take ~10
years just to break even.

Also the county throws away their inspection paperwork I'm told so if
you need another one or the next home owner wants one you have to fork
over another $200.


Don KPC6NDB
Upland, CA


On 24-Oct-14 17:42, Lin Kerns linkerns@gmail.com [californiadisasters]
wrote:
>
>
> California Earthquake Authority Proposes to Lower Rates
>
> By Don Jergler | October 23, 2014
>
> The California Earthquake Authority on Thursday proposed an average 8
> percent decrease in rates.
>
> CEA's Advisory Panel recommended the rate decreases, along with
> additional coverage options in deductibles, discounts and certain
> limits, to the CEA Governing Board, which next meets in December. Board
> approval would advance the proposals to regulatory consideration by the
> California Department of Insurance.
>
> If the board and CDI clear the way, CEA's new expanded coverages and
> lower rates would begin to take effect Jan. 1, 2016.
>
> CEA CEO Glenn Pomeroy said an increasingly rate-friendly reinsurance
> space and capital markets with an appetitive for investing in
> catastrophe bonds generated enough savings for the carrier to offer the
> rate reduction.
>
> "The risk transfer benefits to an organization like ours have increased
> dramatically over the last couple of years," Pomeroy said.
>
> In an announcement earlier this week, CEA said it's selling $350 million
> in bonds
> <http://www.insurancejournal.com/news/west/2014/10/20/344083.htm> to
> strengthen its ability to pay claims.
>
> CEA, which provides roughly two-thirds of the residential earthquake
> insurance in California, has nearly 856,000 policyholders.
>
> According to CDI, 10 percent of California households with home
> insurance also have the separate policy needed to cover earthquake
> damage. That fact was highlighted in August during the 6.0 magnitude
> earthquake in Napa, which has a dismal 6 percent take up rate on
> earthquake insurance.
>
> With the current proposal, CEA would expand customers' choice of
> deductibles – the difference between covered damage and the CEA claim
> payment – from the present 10 or 15 percent to a range of: 5, 10, 15,
> 20, or 25 percent, for all policy types.
>
> Pomeroy said in talking to policyholders and homeowners without policies
> that the increased flexibility of choosing lower premiums for a higher
> deductible or a deductible that would trigger coverage with smaller
> losses was of significant interest.
>
> "There is a general understanding out here among California homeowners
> that we live in earthquake country," he said. "Most of the people talked
> to said they would support efforts to make earthquake insurance more
> affordable and offer more choices."
>
> He said he believes the new coverages combined with the reduced rates
> will help boost earthquake insurance take up in California.
>
> "We're assuming a percent or two at least," Pomeroy said.
>
> CEA is also proposing a higher hazard-mitigation premium discount of 10
> to 20 percent for homeowners. The discounts would be subject to
> verification of a retrofit. CEA's current 5 percent retrofit discount
> would still be offered for new and renewal policyholders who do not
> verify a retrofit.
>
> Other proposed coverage enhancements include higher sublimits for
> energy-efficient properties, chimneys, and glass breakage, as well as
> higher limits for personal property and loss of use/additional living
> expense coverages.
>
> CEA is a publicly managed, privately funded, not-for-profit organization
> that provides residential earthquake insurance. CEA earthquake insurance
> is sold through participating insurance companies.
>
> http://www.insurancejournal.com/news/west/2014/10/23/344629.htm
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------------------------------------
Posted by: Don <stb55@verizon.net>
------------------------------------

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