California Earthquake Authority
Basic Earthquake Policy
Summary: The 1994 Northridge earthquake in California led to severe restrictions in coverage availability for homeowners due to an existing rule that earthquake coverage must be offered. The quake caused an estimated $20 billion in residential damages alone, and insurers pulled back from writing homeowners policies because of earthquake risk. In 1995, due to the severe lack of coverage, the legislature created a reduced-coverage earthquake policy covering the basic dwelling but excluding non-essentials such as pools, patios, and detached structures. Carriers could offer this mini-policy and satisfy the requirement to provide earthquake coverage.
Christine G. Barlow, CPCU
Christine G. Barlow, CPCU, is Executive Editor of FC&S Expert Coverage Interpretation, a division of National Underwriter Company and ALM. Christine has over thirty years’ experience in the insurance industry, beginning as a claims adjuster then working as an underwriter and underwriting supervisor handling personal lines. Christine regularly presents and moderates webinars on a variety of topics and is an experienced presenter.